01824cas a2200241 a 4500 AALejournalIMF007855 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842104 1018-5941 BD-DhAAL BD-DhAAL Kleiman, Ephraim. Taxes and the Price Level : A Further Examination of the PPP Hypothesis / Ephraim Kleiman. Washington, D.C. : International Monetary Fund, 1993. 1 online resource (50 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 The effects of taxation on the general price level have traditionally been regarded as reflecting monetary policy, rather than fiscal factors. This view abstracted from the possible endogeneity of monetary expansion with respect to tax hikes, and from the effects which taxation may have on the reserve price of entrepreneurial labor. An analysis of Purchasing Power Parity data for 51 countries from stage IV of the ICP project supports the hypothesis that domestic indirect taxes tend to raise the general price level. In contrast to the accepted view, other prices do not seem to decline to offset the effect of such taxes on the price of tradables. The paper also presents some new evidence on the other factors which cause national price levels to diverge from PPP. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1993/005 Full text available on IMF http://elibrary.imf.org/view/journals/001/1993/005/001.1993.issue-005-en.xml IMF e-Library