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The Optimum Quantity of Money Revisited: Distortionary Taxation in a Search Model of Money

Ritter, Moritz
Munich Personal RePEc Archive · Reports
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stabilization
This paper incorporates a distortionary tax into the microfoundations of money framework and revisits the optimum quantity of money. An optimal policy may consist of both a positive tax rate and a positive nominal interest rate: if the buyer’s surplus share is inefficiently small, the intensive marg
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