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Currency Substitution and the Regressivity of Inflationary Taxation
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
Currency Substitution and the Regressivity of Inflationary Taxation
Currency Substitution and the Regressivity of Inflationary Taxation |
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| Creator |
Sturzeneger, Federico A.
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| Subject |
—
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| Description |
The purpose of this paper is to show that in the presence of financial adaptation or currency substitution. the inflation tax is extremely regressive. This regressivity arises from the existence of a fixed cost of switching to inflation-proof transactions technologies. This fixed cost makes it optimal only for those agents with sufficiently high incomes to switch out of domestic currency. The effects are illustrated and quantified for a particular case.
Currency Substitution and the Regressivity of Inflationary Taxation |
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| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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| Contributor |
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| Date |
2010-03-11
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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/225
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| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 7, No 1 (1992); 177-192
Revista de Análisis Económico – Economic Analysis Review; Vol 7, No 1 (1992); 177-192 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/225/451
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