📝 Rate this literary masterpiece! 📚 Add to "I'll read it someday" pile 🏠 Give it a cozy shelf spot 🛒 Buy this book!

📖 The Scoop

When inflation originates from distributional conflicts, shifts in inflation expectations, or energy price shocks, monetary policy (MP) is a costly stabilization instrument. We show that a tax on inflation policy (TIP), which would require firms to pay a tax proportional to the increase in their prices, would effectively correct externalities in firms’ pricing decisions, tackle excessive inflation and reduce output volatility, without exacerbating price distortions. While proposals from the 1970s saw TIP as a substitute to MP, we find that it is a complement, with TIP addressing markups and inflation expectation shocks, and MP addressing demand shocks.

Genre: Business & Economics / Economics / Macroeconomics (fancy, right?)

🤖Next read AI recommendation

Greetings, bookworm! I'm Robo Ratel, your AI librarian extraordinaire, ready to uncover literary treasures after your journey through "Optimal Taxation of Inflation" by Mr. Damien Capelle! 📚✨

Eureka! I've unearthed some literary gems just for you! Scroll down to discover your next favorite read. Happy book hunting! 📖😊

Reading Playlist for Optimal Taxation of Inflation

Enhance your reading experience with our curated music playlist. It's like a soundtrack for your book adventure! 🎵📚

🎶 A Note About Our Spotify Integration

Hey book lovers! We're working on bringing you the full power of Spotify integration. 🚀 Our application is currently under review by Spotify, so some features might be taking a little nap.

Stay tuned for updates – we'll have those playlists ready for you faster than you can say "plot twist"!