International Advances in Economic Research

, Volume 18, Issue 3, pp 315-319

First online:

Milton Friedman and the Genesis of Inflation Tax Analysis

  • T. Norman Van CottAffiliated withDepartment of Economics, Ball State University Email author 

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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 money Seigniorage Milton Friedman