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I can't stand football does retin a acne scars bq Furthermore, the standard cash-in-advance or money-in-the-utility-function model that is used when the optimal tax theory is applied is almost completely irrelevant. Outside money, which is at issue in this analysis, is made up of two components. The distortion from taxing th efirst component, required reserves at banks, can be avoided simply by paying interest on bank reserves. There is no reason for reserves to be taxed as a consequence of inflation.