On the Use of the Inflation Tax when Non-Distortionary Taxes are Available
Haslag, Joseph H.
Metadata[+] Show full item record
If a inflation tax base has been created via a fixed reserve requirement, will a benevolent government use the inflation tax as a (partial) source of revenue even though a non-distortionary revenue source is available? Using a simple overlapping generations model with return dominated money, we show that the answer can be yes.
Working papers (Department of Economics);WP 00-07
Department of Economics, 2000