Does it matter in a revenue-neutral setting if the government changes the inflation tax base or the inflation tax rate? We answer this question using an overlapping generations model in which bonds, capital, and cash reserves coexist, and the government uses seigniorage to service its debt,...

Does it matter in a revenue-neutral setting if the government changes the inflation tax base or the inflation tax rate? We answer this question using an overlapping generations model in which bonds, capital, and cash reserves coexist, and the government uses seigniorage to service its debt,...

In this chapter, we examine the relationship between the cyclical components of output, the price level and the inflation rate. During the post-war period, there is a negative correlation between output and the price level and a positive correlation between output and the inflation rate. A phase...