Optimality of the Friedman rule in economies with distorting taxes

• 成果类型: Article
• 署名作者: Chari, VV; Christiano, LJ; Kehoe, PJ
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; Northwestern University; University of Pennsylvania
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(96)90034-3
• 发表日期: 1996
• 页码: 203-223
• 关键词: Optimal monetary policy; inflation tax; Ramsey policy

摘要

We find conditions for the Friedman rule to be optimal in three standard monetary models. Our main contribution is to shed light on two issues in the literature. First, the conventional view maintains that when money is a final good, its services should be taxed. Moreover, if money demand is interest-inelastic, its services should be taxed heavily. We show that this view is incorrect. Second, there is an ongoing controversy about whether the optimality of the Friedman rule is connected to the intermediate goods result from public finance. We resolve this controversy by showing a deep connection between these results.