Greg Mankiw's Blog: The Inflation Tax
One of my ec 10 students wonders whether it is possible to defend inflation: Why is it such a bad thing for governments to rely more on the "inflation tax"? As long as it is applied within the context of an inflation-targeting Fed, all the negatives of inflation can be contained. That is, as long as the Fed sets a target inflation rate (say, 15%) and then uses open market techniques to bring infla
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http://www.doblog.com/weblog/myblog/72014/510
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