01587cas a2200241 a 4500 AALejournalIMF007735 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451942729 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Optimal Intertemporal Taxationon Consumption and the Term Structure of Government Debt. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper addresses the time-consistency problem of optimal policy when intertemporal prices are inflexible. For small, open economies facing given world interest rates, it shows that a consumption tax, rather than a tax on wage income, is time-consistent under a variety of circumstances, even including some cases where the optimal tax rate is not constant over time. This result, when it applies, restores the neutrality of the term structure of government debt, and reaffirms the tax-smoothing theory of debt determination. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/115 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/115/001.1988.issue-115-en.xml IMF e-Library