, Volume 18, Issue 3, pp 315-319
Date: 17 May 2012

Milton Friedman and the Genesis of Inflation Tax Analysis

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access


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.