The inflation tax is the effect on the public of

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Rylee Fisher

Business

8 May, 23:41

The inflation tax is the effect on the public of

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Jaycee Coleman · Answer 1

Inflation tax is an effect afflicted to the public due to holding of cash at the time of high inflation rates. As the government produces more money by printing authenticated paper assets, the inflation rate increases. This is why production of cash money is closely regulated.