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Milton Friedman and the Genesis of Inflation Tax Analysis

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  • T. Van Cott

Abstract

This essay argues that Milton Friedman’s initial exposition of the inflation tax on money was flawed. Ironically, the flaw traces to Friedman’s attempt to shoehorn the tax into a Keynesian (circa 1936) setting. While the subsequent inflation tax literature has never acknowledged the flaw, it also never utilized a Keynesian setting to exposit the tax. Copyright International Atlantic Economic Society 2012

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  • T. Van Cott, 2012. "Milton Friedman and the Genesis of Inflation Tax Analysis," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(3), pages 315-319, August.
    • Handle: RePEc:kap:iaecre:v:18:y:2012:i:3:p:315-319:10.1007/s11294-012-9355-2
    DOI: 10.1007/s11294-012-9355-2
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    References listed on IDEAS

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    1. Edmund S. Phelps, 1965. "Anticipated Inflation and Economic Welfare," Journal of Political Economy, University of Chicago Press, vol. 73(1), pages 1-1.
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    6. Ephraim Kleiman, 2000. "Early Inflation Tax Theory and Estimates," History of Political Economy, Duke University Press, vol. 32(2), pages 233-266, Summer.
    7. Marty, Alvin L, 1973. "Growth, Satiety, and the Tax Revenue from Money Creation," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1136-1152, Sept.-Oct.
    8. T. Norman Van Cott, 1981. "Inflation as a Tax On Money: Integfration Into Is-Lm Analysis," Public Finance Review, , vol. 9(1), pages 61-74, January.
    9. Friedman, Milton, 1971. "Government Revenue from Inflation," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 846-856, July-Aug..
    10. Jeffrey Rogers Hummel, 2007. "Death and Taxes, Including Inflation: the Public versus Economists," Econ Journal Watch, Econ Journal Watch, vol. 4(1), pages 46-59, January.
    11. Bohanon, Cecil E & McClure, James E & Van Cott, T Norman, 1990. "Government Inflation Statistics and the Inflation Tax on Money," Public Finance = Finances publiques, , vol. 45(1), pages 164-166.
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