School textbooks tell us that inflation is about rise in price level of the goods. They punch us with some schizophrenic statements and make students believe that “inflation is good for the economy”.
Taxation is legal robbery. My facebook note on this “polemic” quote can be read here. Whereas, in the words of Milton Friedman, inflation is taxation without legislation.
Since the government is suffering from apoplithorismosphobia, their monetary policies are likely to act monstrously. They permit central banks to print money out-of-thin-air and issue open bonds to “automatically stabilize” the capital market. This action of “moral hazard” affects the structure of capital, in the long-run. It also debauches the “purchasing power” of all individuals (excluding “public” officials), with every increase in the quantity of monetary unit. Result is emporiophobia.
Also, read: Mondustrial Policy.