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Why Government Anti-Inflation Plans Backfire

Why Government Anti-Inflation Plans Backfire
Edwin Lopez sorts the money in the cash register at Frankie's Pizza in Miami on Jan. 12, 2022. Joe Raedle/Getty Images
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Commentary

Governments love inflation. It’s a hidden tax on everyone and a transfer of wealth from bank deposits and real wages to indebted governments that collect more receipts via higher indirect taxes and devalue their debts. That’s why we can’t expect governments to take decisive action on inflation.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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