Foreign Demand for Domestic Currency and the Optimal Rate of Inflation
研究外国对本币需求如何影响最优通胀率。当没有这种需求时，弗里德曼规则（按实际利率通缩）最优；但存在外国需求时，最优年通胀率在2%到10%之间，政府通过通胀税从国外获取铸币税收入。
We characterize the Ramsey optimal rate of inflation in a model with a foreign demand for domestic currency. In the absence of such demand, the model implies that the Friedman rule—deflation at the real rate of interest—is optimal. We show analytically that in the presence of a foreign demand for domestic currency, this result breaks down. Calibrated versions of the model deliver optimal annual rates of inflation between 2% and 10%. The domestically benevolent government imposes an inflation tax to extract resources from the rest of the world in the form of seignorage revenue.