Has any country used inflation as the primary, official way to raise revenue instead of taxes, a la Tezos? (Please don't answer "Weimar Germany". I'm asking for governments where that's the explicit, accepted source of funds rather than a desperate emergency measure)https://twitter.com/FEhrsam/status/949355741160206336 …
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Attempt at practical framing: goal of inflation target is maintain psychology of “spend rather than hold”. Also, traditional central banker risk/reward says better to have slightly higher inflation than risk deflationary spiral. Thus 0%-2% US target rather than -0.5%-1.5%.
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For higher growth (and more volatile) economies, this means inflation target with larger buffer above 0% to avoid deflation. For example, India currently growing 7.3%/yr, central bank targets 4% inflation: https://www.bloomberg.com/amp/news/articles/2017-12-12/india-s-inflation-exceeds-estimate-surges-to-15-month-high …
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There’s also a real complexity/cost associated with needing to change prices (eg reprinting menus and remaking signs), at least for bricks & mortar
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The psychological effect depends a lot on savings rate and growth. Even moderate inflation generates resentment from those who saved to those who borrowed.
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I've seen up to 10% not be a huge issue of discussion during times of growth.
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