-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that …-adjusted probability distributions for inflation at different horizons. The estimates suggest that it is unlikely that inflation will lower … the US fiscal burden significantly, and that the effect of higher inflation is modest for plausible counterfactuals. If …

The contrast between the early nineteenth century Argentinean experience of high inflation and the American experience … of low inflation is interpreted in terms of a dynamic monetary model of optimal taxation. It is argued that the two … the inflation tax may be viewed as an optimal solution to its wartime problems. By contrast, with the exception of the …

the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has …

equilibrium framework in which lump-sum taxes are absent. The policies analyzed are an inflation tax,commercial policy, and an … inflation tax for small revenue needs. Furthermore, if the policy target were allocative, we would tend to use only one policy …

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 …

generated outside of its borders. In this paper we characterize the Ramsey-optimal rate of inflation in an economy with a … optimal rates of inflation between 2 and 10 percent per annum. The domestically benevolent government finds it optimal to … impose an inflation tax as a way to extract resources from the rest of the world in the form of seignorage revenue …

-cyclical inflation ex post, which leads risk-averse lenders to require a risk premium ex ante. This makes local currency debt too …

A country that decides to fix its exchange rate thereby gives up control over its own inflation rate and the … seigniorage. This paper uses an optimal inflation tax approach to analyze the consequences for optimal rates of income taxation … which the country is free to determine its own rates of inflation is optimal; fixed exchange rates are second best, and the …

constraint. It discusses five channels: (i) how inflation can (and cannot) lower the real burden of the public debt, (ii) how …