of higher inflation tax revenues: inflation dynamics in line with the fiscal theory of the price level must take place in …

of higher inflation tax revenues: inflation dynamics in line with the fiscal theory of the price level must take place in …

This paper studies the short-run macroeconomic effects of legislated tax changes in Germany using a vector … autoregression (VAR) approach. Identification of the tax shock follows the narrative approach recently proposed by Romer and Romer … monetary policy reaction following announcement of the tax policy. In response to a 1 percent increase in the tax-to-GDP ratio …