Sources of Government Finance, Their Appropriate Use …
The term seignorage often includes a related source of revenue, commonly known as the "inflation tax", which arise when an increase in the price level lowers the real value of the government's debt to the public. Since the value of non-financial assets is largely unaffected by inflation, the incidence of this tax is on the holders of unindexed financial assets (including government bonds) and ... ................
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