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Currency Substitution and Government Revenue from Inflation

Economic Analysis Review

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Title Currency Substitution and Government Revenue from Inflation
Currency Substitution and Government Revenue from Inflation
 
Creator Khan, Mohsin S.
Ramírez-Rojas, C. Luis
 
Subject
 
Description Currency Substitution and Government Revenue from Inflation
The purpose of this paper is to show that in the case of an open economy the calculations of revenue-maximing rates of inflation have been made using a restrictive model that assumes that domestic residents can only substitute between domestic money and goods (and real assets). The paper demonstrates that once the effects of currency substitution, so common in developing countries, are taken into account, the inflation rate that maximizes the proceeds of the inflation tax can be quite lower than would be the case when currency substitution is ignored.
 
Publisher Universidad Alberto Hurtado - Facultad de Economía y Negocios
 
Contributor

 
Date 2010-03-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier http://www.rae-ear.org/index.php/rae/article/view/310
 
Source Revista de Análisis Económico - Economic Analysis Review; Vol 1, No 1 (1986); 79-88
Revista de Análisis Económico – Economic Analysis Review; Vol 1, No 1 (1986); 79-88
0718-8870
0716-5927
 
Language eng
 
Relation http://www.rae-ear.org/index.php/rae/article/view/310/372