Optimal inflation and the government revenue mix

Eran Yashiv*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper examines the question of optimal inflation and taxation as a government optimal control problem. By inclusion of bond finance and portfolio decisions by private agents in a perfect foresight framework it is shown that: (i) optimal steady state inflation is independent of government revenue requirements, (ii) inflation and tax rates do not necessarily move together in optimum.

Original languageEnglish
Pages (from-to)151-154
Number of pages4
JournalEconomics Letters
Issue number2
StatePublished - Dec 1989
Externally publishedYes


Dive into the research topics of 'Optimal inflation and the government revenue mix'. Together they form a unique fingerprint.

Cite this