The Optimal Inflation Tax
Banco de Portugal, Universidade Católica Portuguesa
Monetary general equilibrium model with money in the utility function (Sidrauski-Brock type) and explicit transactions technology equivalence, analyzing optimal inflation tax under second-best taxation without lump-sum taxes
linear production technology with unitary coefficients
Section 2.1, p.330
Friedman rule optimal: zero nominal interest rate implies deflation at rate of time preference; first best solution