IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v9y1981i1p61-74.html
   My bibliography  Save this article

Inflation as a Tax On Money: Integfration Into Is-Lm Analysis

Author

Listed:
  • T. Norman Van Cott

    (Ball State University)

Abstract

Inflation acts as a tax on private monetary wealth, thereby enabling the government to command real resources via inflationary monetary issue. Curiously, the inflation tax on money concept has never been integrated into the IS-LM tradition of macroeconomic analysis. This article illustrates how inflation as a tax on money can be dealt with in IS-LM terms. By remedying this long-standing gap in macroeconomics literature, the IS-LM tradition in macroeconomics is more open to discussion of issues related to the inflation tax.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:pubfin:v:9:y:1981:i:1:p:61-74
    DOI: 10.1177/109114218100900105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114218100900105
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114218100900105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nichols, Donald A, 1974. "Some Principles of Inflationary Finance," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 423-430, Part I, M.
    2. John A. Tatom, 1976. "The welfare cost of inflation," Review, Federal Reserve Bank of St. Louis, vol. 58(Nov), pages 9-22.
    3. Turnovsky,Stephen J., 1977. "Macroeconomic Analysis and Stabilization Policy," Cambridge Books, Cambridge University Press, number 9780521291873, October.
    4. Charlotte E. Ruebling, 1975. "Financing government through monetary expansion and inflation," Review, Federal Reserve Bank of St. Louis, vol. 57(Feb), pages 15-23.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute.
    2. Ferda Halicioglu, 2005. "Active And Passive Seigniorage Revenues: The Case For Turkey 1970-1997," Macroeconomics 0503010, University Library of Munich, Germany.
    3. Thomas J. Sargent, 1982. "The Ends of Four Big Inflations," NBER Chapters, in: Inflation: Causes and Effects, pages 41-98, National Bureau of Economic Research, Inc.
    4. Gerasimos T. Soldatos, 2018. "Multiplier–Accelerator Interaction in the Presence of an Underground Economy and Taxation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(2), pages 244-256, May.
    5. Yu Chen & Haiwen Zhou, 2017. "An Overlapping-Generations Model of Firm Heterogeneity in Economic Development," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(4), pages 660-676, December.
    6. Haiwen Zhou & Ruhai Zhou, 2016. "A Dynamic Model of the Choice of Technology in Economic Development," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 11(3), pages 498-518, September.
    7. Hanawa, Toshiya & Kofuji, Yasuo, 1980. "The Nominal Rate of Interest and Inflationary Expectations," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 15(1), pages 57-67, October.
    8. J. Safaei & N. E. Cameron, 2003. "Credit channel and credit shocks in Canadian macrodynamics - a structural VAR approach," Applied Financial Economics, Taylor & Francis Journals, vol. 13(4), pages 267-277.
    9. Haiwen Zhou, 2020. "Monitoring Intensity and Technology Choice in a Model of Unemployment," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(3), pages 504-520, June.
    10. T. Norman Van Cott & Gary J. Santoni, 1976. "Consumption-Based Private To Public Redistribution During Inflation," Public Finance Review, , vol. 4(4), pages 453-464, October.
    11. Vittorio Corbo, 1983. "Un Modelo de Corto Plazo para una Economía Pequeña y Abierta," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 20(60), pages 177-190.
    12. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    13. Mercado, Ruben & Kendrick, David, 1998. "Hall and Taylor´s and John Taylor´s Model in DUALI," MPRA Paper 111974, University Library of Munich, Germany.
    14. Stephen J. Turnovsky, 2011. "Stabilization Theory and Policy: 50 Years after the Phillips Curve," Economica, London School of Economics and Political Science, vol. 78(309), pages 67-88, January.
    15. Posada Posada, Carlos Esteban, 1985. "Tasa de interes e inflacion : una nota aclaratoria," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 17, pages 149-156.
    16. F. Ploeg, 1989. "Disposable income, unemployment, inflation and state spending in a dynamic political-economic model," Public Choice, Springer, vol. 60(3), pages 211-239, March.
    17. Läufer, Nikolaus K. A., 1997. "Die Seignorage-Kosten des Euro für Deutschland: Eine Kritik an Sinn und Feist," Discussion Papers, Series II 349, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    18. Keigo Kameda & Masao Nakata, 2005. "Public Debt and the Macroeconomic Stability of Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 1(1), pages 49-90, March.
    19. Deleau Michel & Malgrange Pierre & Muet Pierre-alain, 1980. "Fondements de la modélisation macroéconomique quantitative : une maquette représentative," CEPREMAP Working Papers (Couverture Orange) 8011, CEPREMAP.
    20. Liviatan, Nissan, 2002. "The paradox of indexed money substitutes," Economics Letters, Elsevier, vol. 75(2), pages 199-202, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:9:y:1981:i:1:p:61-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.