On the Use of the Inflation Tax when Non-Distortionary Taxes are Available
Abstract
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.
Part of
Citation
Department of Economics, 2000
Rights
OpenAccess.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.