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A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Sunday, December 18, 2011

Seigniorage and inflation tax

Professor M. A. Taslim writes on the relationship between the excessive government borrowing and inflation through the interaction between money creation and inflation tax. This is an excellent piece for learning, especially it counters those arguments that favor the government's excessive borrowing from the banking system for budget financing.

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