Pakko, Michael R.; Gavin, William T.; Kydland, Finn E. - Society for Computational Economics - SCE - 2004
contribute much to aggregate fluctuations. Capital gains taxes are important when there are persistent changes in the inflation … rate. Money growth shocks do not cause persistence changes in inflation when the central bank uses a money growth rule … inflation, raising both the nominal value of capital and the effective marginal capital gains tax rate. …