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
Figure 2, p.337
Numerical calibration with Calvo-Guidotti utility recalibrated to fit US money demand; semielasticity=7; optimal nominal interest rate considerably smaller