On the Use of the Inflation Tax When Nondistortionary Taxes Are Available

B-Tier
Journal: Review of Economic Dynamics
Year: 2001
Volume: 4
Issue: 4
Pages: 823-841

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using a pure-exchange overlapping generations model in which money is valued because of legal restriction, we show the following: (a) a benevolent government may make some use of the inflation tax in conjunction with a lump-sum tax on the young, but not if lump-sum taxes on the old are available, and (b) the welfare-maximizing monetary policy may deviate from the Friedman rule (contract the money supply so as to equate the real return on money and other competing stores of value) in either case. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:v:4:y:2001:i:4:p:823-841
Journal Field
Macro
Author Count
2
Added to Database
2026-01-24