Year: 1993
Author: Steindl, Frank G.
Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 2 : pp. 239–245
Abstract
Making a Dishonest Government Credible: The Inflation Tax
In a stationary economy a government maximizes revenue from the tax on real balances where the demand is unit elastic. In this paper, two propositions are established. First, it is shown that there is an incentive for government to gain additional revenue through surprise inflation by varying the rate around the traditional unit elastic revenue maximizing point. Second, it is demonstrated that this incentive is muted and, in some cases, entirely negated by the public’s actions based on its expectations of such revenue enhancing activity
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.26.2.239
Credit and Capital Markets – Kredit und Kapital, Vol. 26 (1993), Iss. 2 : pp. 239–245
Published online: 1993-02
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 7
Author Details
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