01684cas a2200241 a 4500 AALejournalIMF007758 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451976977 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Optimal Taxation Policies in the EMS : A Two-Country Model of Public Finance. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (48 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 analyzes, in a public finance context, how the optimal use of the inflation and the consumption tax is affected by incorporating into the model constraints on policy decisions that are likely to develop in the context of the EMS by 1992. Two main questions are addressed: first, how the constraint of having to share a common inflation tax, in order to preserve fixed-exchange rates, influences the optimal policy decisions concerning the inflation tax; secondly, how the harmonization of consumption taxes affects the spread between national inflation rates, and hence the probability of having to resort to realignments. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/040 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/040/001.1989.issue-040-en.xml IMF e-Library