منابع مشابه
Inflation Aversion and the Optimal Inflation Tax
The optimal inflation tax is reexamined in the framework of dynamic second best economy populated by individuals with inflation aversion. A simple formula for the optimal inflation rate is derived. Different from the literature, it is shown that if the marginal excess burden of other distorting taxes approaches zero, Friedman’s rule for optimum quantity of money is not optimal, and the optimal ...
متن کاملAvoiding the Inflation Tax
I study the effects of inflation on the purchasing behavior of buyers in an economy where money is essential for certain transactions (as in Lagos and Wright, 2005). I show that higher inflation induces buyers to search for transactions more intensively and buy goods of worse quality to avoid holding for a prolonged period of time a fast depreciating asset like money. The standard framework fai...
متن کاملThe Optimal Inflation Tax *
We determine the second best rule for the inflation tax in monetary general equilibrium models where money is dominated in rate of return. The results in the literature are ambiguous and inconsistent across different monetary environments. We derive and compare the optimal inflation tax solutions across the different environments and find that Friedman's policy recommendation of a zero nominal ...
متن کاملTax evasion and the optimal inflation tax
We developed a simple monetary model to study the effects of tax evasion on the optimal inflation tax. The model is constructed so that inflation might be an indirect way of taxing the underground sector of the economy. We show that while there are theoretical reasons for positive optimal inflation rates, the effects are quantitatively small, even in countries with large underground sectors. We...
متن کاملThe Jointly Optimal Inflation Tax, Income Tax Structure, and Transfers
The welfare-maximizing income tax structure, rate of money creation, and amounts of intergenerational transfers are jointly determined for given rates of government consumption. When government consumption is zero, it is found for the parameter values examined that the income tax structure is progressive, the rate of money change is negative, and positive transfers are made to the old. As gover...
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ژورنال
عنوان ژورنال: Macroeconomic Dynamics
سال: 2017
ISSN: 1365-1005,1469-8056
DOI: 10.1017/s1365100517000736