Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062069 | Economics Letters | 2007 | 7 Pages |
Abstract
We construct a dynamic Keynesian cross. The dynamic extension allows for seigniorage on government financing in lieu of lump sum taxation. Because seigniorage imposes no tax burden, expansionary fiscal policy improves welfare even if wasteful.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Masayuki Otaki,