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• W1979027909 abstract "This paper studies the national welfare maximizing inflation tax in an open economy with imperfect competition. It shows that the presence of a monopolistic distortion dampens the incentive to engage in strategic use of the inflation tax. If this dampening effect is strong enough, monetary policy becomes completely inward-looking, restoring the Friedman rule as an equilibrium strategy regardless of the actions of the foreign government. This aspect of the policy interaction—driven entirely by the presence of imperfect competition—is important because it determines the underlying structure of the policy game and is therefore crucial for determining whether or not there exist welfare gains from international monetary cooperation." @default.
• W1979027909 created "2016-06-24" @default.
• W1979027909 creator A5076959944 @default.
• W1979027909 date "2007-01-01" @default.
• W1979027909 modified "2023-09-27" @default.
• W1979027909 title "The inflation tax in an open economy with imperfect competition" @default.
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• W1979027909 doi "https://doi.org/10.1016/j.red.2006.08.004" @default.
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