Define inflation tax (also called seignorage). How does the government collect this tax, and who pays it?

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Define inflation tax (also called seignorage). How does the government collect this tax, and who pays it? Can the government always increase its real revenues from the inflation tax by increasing money growth and inflation?

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Macroeconomics

ISBN: 978-0321675606

6th Canadian Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

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Question Posted: Apr 01, 2016 03:58 AM

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Define inflation tax (also called seignorage). How does the government collect this tax, and who pays it?

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The inflation tax or seignorage arises when the government raises revenue by prin...View the full answer

Macroeconomics

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