Inflation, taxation, and log-run growth

Article Abstract:

A study examining how expected inflation levels affects capital accumulation rates and capital productivity levels, suggests that there is a significant impact on growth. Businesses over-economize on holdings of money, while households are less willing to supply labour. A cut of 50% in inflation levels for 1950-1985 would have resulted in a rise of at least 25% in national income growth in per capita terms. Inefficient taxation tends to be linked to high inflation, and there is thus a need to reform the tax system.

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Revenue maximizing inflation

Article Abstract:

With reference to Cagan's theory, an inflation tax rate that has a potential to maximize revenue is discussed.

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The sustainability of bond-financed deficits: an overlapping generations approach

Article Abstract:

The impact of permanent fiscal deficits is examined in terms of a model of overlapping generations.

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