Inflation, distortionary taxation and the design of monetary policy: the role of social cohesion

The relationship between central banks and inflation is considered in order to disprove existing studies which state that distortions and inflationary bias occur in the real world. While much attention has been given to the issue in existing studies, no attempt has been made to examine effects of an...

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Bibliographic Details
Published inPSL quarterly review Vol. 51; no. 204; pp. 37 - 53
Main Author H. PRAST H.
Format Journal Article
LanguageEnglish
Published Associazione Economia civile 01.03.1998
Subjects
Economic aspects
Fiscal Policy
Inflation
Monetary policy
Public Finance Activities
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Summary:The relationship between central banks and inflation is considered in order to disprove existing studies which state that distortions and inflationary bias occur in the real world. While much attention has been given to the issue in existing studies, no attempt has been made to examine effects of any third factors. Results reveal that inflation is significantly affected by distortionary taxation and that social cohesion leads to price stability in the post Bretton Woods period.
ISSN:2037-3635
2037-3643