NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Optimality of the Friedman Rule in Economies with Distorting Taxes

V. V. Chari, Lawrence J. Christiano, Patrick J. Kehoe

NBER Working Paper No. 4443
Issued in August 1993
NBER Program(s):   EFG

We find conditions for the Friedman rule to be optimal in three standard models of money. These conditions are homotheticity and separability assumptions on preferences similar to those in the public finance literature on optimal uniform commodity taxation. We show that there is no connection between our results and the result in the standard public finance literature that intermediate goods should not be taxed.

download in pdf format
   (1480 K)

download in djvu format
   (172 K)

email paper

This paper is available as PDF (1480 K) or DjVu (172 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4443

Published: Journal of Monetary Economics, vol. 37, no. 2 (April 1996). citation courtesy of

Users who downloaded this paper also downloaded these:
Ireland w8821 Implementing the Friedman Rule
Eichenbaum and Singleton Do Equilibrium Real Business Cycle Theories Explain Postwar U.S. Business Cycles?
Schmitt-Grohe and Uribe w16054 The Optimal Rate of Inflation
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us