Lassila, Jukka - In: Journal of Money, Credit and Banking 27 (1995) 2, pp. 389-403
Indexation of progressive income taxes provides a way of cushioning against various shocks. It is both an alternative and a complement to wage indexation, but as a policy instrument it is much more ambiguous. James M. Holmes and David J. Smyth (1972) have shown that if money demand depends on...