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Optimal taxation and inflation in an open economy
Publication
, Journal Article
Kimbrough, KP
Published in: Journal of Economic Dynamics and Control
January 1, 1991
This paper examines the role of the inflation tax in the optimal revenue-raising tax package for a small open economy where money is held because it serves to reduce transacttions costs associated with purchasing goods. Consumers choose whether domestic money or foreign money will serve as the medium of exchange for various goods purchases so as to minimize such costs. Results are derived regarding the appropriate role of taxes on domestic and foreign money in the optimal tax structure. It is demonstrated that with a sufficiently rich tax structure Friedman's rule, which calls for a monetary policy that drives the nominal interest rate to zero, is a component of the optimal tax policy. © 1991.
Duke Scholars
Published In
Journal of Economic Dynamics and Control
DOI
ISSN
0165-1889
Publication Date
January 1, 1991
Volume
15
Issue
1
Start / End Page
179 / 196
Related Subject Headings
- Economics
- 3803 Economic theory
- 3802 Econometrics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory
Citation
APA
Chicago
ICMJE
MLA
NLM
Kimbrough, K. P. (1991). Optimal taxation and inflation in an open economy. Journal of Economic Dynamics and Control, 15(1), 179–196. https://doi.org/10.1016/0165-1889(91)90032-V
Kimbrough, K. P. “Optimal taxation and inflation in an open economy.” Journal of Economic Dynamics and Control 15, no. 1 (January 1, 1991): 179–96. https://doi.org/10.1016/0165-1889(91)90032-V.
Kimbrough KP. Optimal taxation and inflation in an open economy. Journal of Economic Dynamics and Control. 1991 Jan 1;15(1):179–96.
Kimbrough, K. P. “Optimal taxation and inflation in an open economy.” Journal of Economic Dynamics and Control, vol. 15, no. 1, Jan. 1991, pp. 179–96. Scopus, doi:10.1016/0165-1889(91)90032-V.
Kimbrough KP. Optimal taxation and inflation in an open economy. Journal of Economic Dynamics and Control. 1991 Jan 1;15(1):179–196.
![Journal cover image](https://secure.syndetics.com/index.aspx?isbn=/lc.gif&issn=0165-1889&client=dukeuniv)
Published In
Journal of Economic Dynamics and Control
DOI
ISSN
0165-1889
Publication Date
January 1, 1991
Volume
15
Issue
1
Start / End Page
179 / 196
Related Subject Headings
- Economics
- 3803 Economic theory
- 3802 Econometrics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
- 1401 Economic Theory