Milton Friedman and the Genesis of Inflation Tax Analysis
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- Van Cott, T.N. Int Adv Econ Res (2012) 18: 315. doi:10.1007/s11294-012-9355-2
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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.