provisions. Inflation's importance in determining the implicit subsidy to owner-occupied housing has received less attention … also receive essentially untaxed capital gains on their homes during periods of high inflation. The after-tax capital gains … outweigh the higher after-tax interest payments, so inflation reduces the effective cost of homeownership. This paper develops …

This paper extends and evaluates previous work on the positive theory of inflation. We examine the behavior of … governments concerned solely with minimizing the deadweight loss from raising revenue through inflation and tax finance. We show … positive contemporaneous association between inflation and the level of tax burdens. We examine the empirical validity of this …