# 经济代写|宏观经济学代写Macroeconomics代考|The inflation-tax Laffer curve

#### Doug I. Jones

Lorem ipsum dolor sit amet, cons the all tetur adiscing elit

couryes-lab™ 为您的留学生涯保驾护航 在代写宏观经济学Macroeconomics方面已经树立了自己的口碑, 保证靠谱, 高质且原创的统计Statistics代写服务。我们的专家在代写宏观经济学Macroeconomics代写方面经验极为丰富，各种代写宏观经济学Macroeconomics相关的作业也就用不着说。

• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础
couryes™为您提供可以保分的包课服务

## 经济代写|宏观经济学代写Macroeconomics代考|The inflation-tax Laffer curve

The tax collected is the combination of the inflation rate and the money demand that pays that inflation tax. Thus, a question arises as to whether countries may choose too high an inflation rate. May the inflation rate be so high that discouraging money demand actually reduces the amount collected through the inflation tax? In other words are we on the wrong side of the Laffer curve?2
To explore this question let’s start with the budget constraint for the government,
$$\dot{m}_t=r d_0+g-\tau-\pi_t m_t$$
$$r d_0+g-\tau=\pi m$$
Assuming a typical demand function for money
$$m=y e^{-\gamma i}$$
we can rewrite this as
$$r d_0+g-\tau=\pi y e^{-\gamma(r+\pi)}$$
Note that
$$\frac{\partial\left(\pi e^{-\gamma(r+\pi)}\right)}{\partial \pi}=y e^{-\gamma(r+\pi)}(1-\gamma \pi),$$
so that revenue is increasing in $\pi$ for $\pi<\gamma^{-1}$, and decreasing for $\pi>\gamma^{-1}$. It follows that $\pi=$ $\gamma^{-1}$ is the revenue maximising rate of inflation. Empirical work, however, has found, fortunately, that government typically place themselves on the correct side of the Laffer curve. ${ }^3$

## 经济代写|宏观经济学代写Macroeconomics代考|The inflation-tax and inflation dynamics

What are the dynamics of this fiscally motivated inflation? Using (19.36), we can write,
$$\pi_t=\gamma^{-1}\left(\log (y)-\log \left(m_t\right)\right)-r .$$
This in (19.34) implies
$$\dot{m}t=r d_0+g-\tau-\gamma^{-1}\left(\log (\gamma)-\log \left(m_t\right)\right) m_t+r m_t .$$ Notice that, $$\left.\frac{\partial \dot{m}_t}{\partial m_t}\right|{S S}=-\gamma^{-1}(\log (y)-\log (m))+\gamma^{-1}+r,$$
which using (19.39)
$$\pi_t=\gamma^{-1}\left(\log (y)-\log \left(m_t\right)\right)-r$$
simplifies to,
$$\left.\frac{\partial \dot{m}t}{\partial m_t}\right|{S S}=\gamma^{-1}-\pi_t$$
Hence, $\left.\frac{\partial \dot{m}t}{\partial m_t}\right|{S S}>0$ for the steady state inflation below $\gamma^{-1}$, and $\left.\frac{\partial \dot{m_i}}{\partial m_l}\right|_{S S}<0$ for the steady state inflation rate above $\gamma^{-1}$.

This means that the high inflation equilibrium is stable. As $m$ is a jumpy variable, this means that, in addition to the well-defined equilibrium at low inflation, there are infinite equilibria in which inflation converges to the high inflation equilibria.

Most practitioners disregard this high inflation equilibria and focus on the one on the good side of the Laffer curve, mostly because, as we said, it is difficult to come up with evidence that countries are on the wrong side. However, the dynamics should be a reminder of the challenges posed by stabilisation.

# 宏观经济学代考

## 经济代写|宏观经济学代写Macroeconomics代考|The inflation-tax Laffer curve

$$\dot{m}_t=r d_0+g-\tau-\pi_t m_t$$

$$r d_0+g-\tau=\pi m$$

$$m=y e^{-\gamma i}$$

$$r d_0+g-\tau=\pi y e^{-\gamma(r+\pi)}$$

$$\frac{\partial\left(\pi e^{-\gamma(r+\pi)}\right)}{\partial \pi}=y e^{-\gamma(r+\pi)}(1-\gamma \pi),$$

## 经济代写|宏观经济学代写Macroeconomics代考|The inflation-tax and inflation dynamics

$$\pi_t=\gamma^{-1}\left(\log (y)-\log \left(m_t\right)\right)-r$$

$$\dot{m} t=r d_0+g-\tau-\gamma^{-1}\left(\log (\gamma)-\log \left(m_t\right)\right) m_t$$

$$\frac{\partial \dot{m}t}{\partial m_t} \mid S S=-\gamma^{-1}(\log (y)-\log (m))+\gamma^{-1}+r$$ 使用 (19.39) $$\pi_t=\gamma^{-1}\left(\log (y)-\log \left(m_t\right)\right)-r$$ 简化为 $$\frac{\partial \dot{m} t}{\partial m_t} \mid S S=\gamma^{-1}-\pi_t$$ 因此， $\frac{\partial \dot{m} t}{\partial m_t} \mid S S>0$ 对于下面的稳态通货膨胀 $\gamma^{-1}$ ，和 Veft. Ifrac $\left{\right.$ partial $\left.\backslash d o t\left{m{-} i\right}\right} \backslash$ partial $\left.m_{-} \mid\right} \backslash$ right $\mid{S S}$ $<\left.0 \frac{\partial \dot{m}i}{\partial m_l}\right|{S S}<0$ 对于上面的稳态通货膨胀率 $\gamma^{-1}$.

## 有限元方法代写

tatistics-lab作为专业的留学生服务机构，多年来已为美国、英国、加拿大、澳洲等留学热门地的学生提供专业的学术服务，包括但不限于Essay代写，Assignment代写，Dissertation代写，Report代写，小组作业代写，Proposal代写，Paper代写，Presentation代写，计算机作业代写，论文修改和润色，网课代做，exam代考等等。写作范围涵盖高中，本科，研究生等海外留学全阶段，辐射金融，经济学，会计学，审计学，管理学等全球99%专业科目。写作团队既有专业英语母语作者，也有海外名校硕博留学生，每位写作老师都拥有过硬的语言能力，专业的学科背景和学术写作经验。我们承诺100%原创，100%专业，100%准时，100%满意。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。

Days
Hours
Minutes
Seconds

# 15% OFF

## On All Tickets

Don’t hesitate and buy tickets today – All tickets are at a special price until 15.08.2021. Hope to see you there :)