Government Revenue From Inflation in Open Economies with Fixed Exchange Rates

Walter Enders and Dennis R. Starleaf

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: In a closed and stationary economy, real government revenue from the Issue of fiat money Is maximized when the rate of issue is such that the elasticity of the demand for real money balances with respect to the rate of inflation is unity. However, Friedman [1971] has shown that this result for a stationary economy does not carry over to a growing economy. In the case of a growing economy, the optimum rate of inflation for the maximization of government revenue from the issue of fiat money is lower than for a stationary economy.

Date: 1976-09-01
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... c6d82f1f41df/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:197609010700001040

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().