4 ms·

this is veering into monetary policy. the government inflates the dollar to pay for things without raising unpopular taxes (80% of treasury bonds purchased by

• harshavr 17y ago
  B) should be disincentive to save using money, not a general disincentive to save itself. One could make investments in any other commodity whose value relative to other commodities stays constant or increases. It is a somewhat unusual tax, in that your tax rate is based on what proportion of your assets are in dollars. Does someone know what the rate per year on dollar assets is and how to calculate it? You would need to know how much money the Fed prints in a year. Do they publish it or was that what auditing the fed was about? Also for A), banks probably factor in inflation while setting the interest rate for a loan. So, the relevant variable, i guess, is unexpected inflation rather than the value of inflation itself. The debtor benefits only when the loan market makes low estimates.