International Advances in Economic Research

, Volume 18, Issue 3, pp 315–319

Milton Friedman and the Genesis of Inflation Tax Analysis


DOI: 10.1007/s11294-012-9355-2

Cite this article as:
Van Cott, T.N. Int Adv Econ Res (2012) 18: 315. doi:10.1007/s11294-012-9355-2


This essay argues that Milton Friedman’s initial exposition of the inflation tax on money was flawed. Ironically, the flaw traces to Friedman’s attempt to shoehorn the tax into a Keynesian (circa 1936) setting. While the subsequent inflation tax literature has never acknowledged the flaw, it also never utilized a Keynesian setting to exposit the tax.


Inflation tax on moneySeigniorageMilton Friedman

Copyright information

© International Atlantic Economic Society 2012

Authors and Affiliations

  1. 1.Department of EconomicsBall State UniversityMuncieUSA