Currency Substitution and Government Revenue from Inflation
Economic Analysis Review
View Archive InfoField | Value | |
Title |
Currency Substitution and Government Revenue from Inflation
Currency Substitution and Government Revenue from Inflation |
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Creator |
Khan, Mohsin S.
RamÃrez-Rojas, C. Luis |
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Subject |
—
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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. |
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Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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Contributor |
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Date |
2010-03-15
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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Format |
application/pdf
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Identifier |
http://www.rae-ear.org/index.php/rae/article/view/310
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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 |
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Language |
eng
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Relation |
http://www.rae-ear.org/index.php/rae/article/view/310/372
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