Inflation, tax rules, and capital formation

the long version

The research presented in this volume combines the traditional subjects of macroeconomics and public finance. From macroeconomics comes a concern with the rate of interest, the capital intensity of production, and the impact of monetary policy. From public finance comes an emphasis on the significance of the distortionary tax rules that have generally been ignored in macroeconomics analysis and a concern with the effects of tax rules and monetary policy in the distribution of income and on the value of assets. The results of this research show the importance of the interaction between tax rules and monetary policy and the importance of including explicit specifications of the tax system in the study of macroeconomic equilibrium.