International Advances in Economic Research

, Volume 18, Issue 3, pp 315–319

Milton Friedman and the Genesis of Inflation Tax Analysis



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 


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Copyright information

© International Atlantic Economic Society 2012

Authors and Affiliations

  1. 1.Department of EconomicsBall State UniversityMuncieUSA

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