The United States Internal Revenue Code contains many provisions for credits, deductions, and other tax advantages intended to achieve various economic goals considered desirable by the U.S. Congress. The depreciation allowance is one such deduction, frequently used to compensate taxpayers for...

This paper analyzes the role of transparency and credibility in accounting for the widely divergent macroeconomic effects of three episodes of deliberate monetary contraction: the post-Civil War deflation, the post-WWI deflation, and the Volcker disinflation. Using a dynamic general equilibrium...