Found inside – Page 123Citizens are aware of taxes — but even that awareness is diffused by the ... and the worst of the hidden taxes , inflation , defies easy understanding . Found inside – Page 148Inflation represents a very large and important tax on the national debt ... deficit of £ 15,000 million it will only be replacing the hidden taxation ... Found inside – Page 153The preference for hidden taxation included the one achieved through inflation and excess borrowing by the state (Macedo, da Silva and de Sousa, 2001). Found inside... tax to eliminate the tax on nominal inflation - induced capital gains . ... George von Furstenberg pointed out that the ratio of mortgage balance to ... Found inside – Page 90In this sense inflation is itself a hidden tax; moreover, it is a tax which ... But, on balance, the public sector is still a substantial gainer in times of ... Found inside – Page 204The anticipated sign of 35 is also ambiguous: we might expect high inflation to lead to a reduction in the holding of nominal balances, including currency; ... Found inside – Page 92This is so because tight money policies and a contractionary fiscal policy ( lower government spending , higher taxes , or both ) will ... creating additional unfavorable balance of payments which will weaken the value of the dollar causing domestic inflation and ... Thus , not only would nominal taxes increase , but so would real taxes . The system , therefore , produces a hidden tax during inflationary times . Found insideWhen the Treasury spends its new cash balances, the money supply increases. ... Unlike other taxes, though, it is a hidden or covert tax. Found inside – Page 870... 269, 823 balance, 104, 274 deficit offsetting a capital-account surplus, ... profiting on exchange rates, 276 debased coinage, acting as a hidden tax, ... Found inside – Page 276All you have to worry about is the nominal value . Why anybody , old or young , would keep a savings ... The second point is related to that . Professor Stuart includes the inflation tax on cash balances in his hidden tax table . I want to find out ... Found inside – Page 75This new, hidden tax has brought about hikes of labour costs conducive to higher inflation and making Polish labour less internationally competitive. Found inside – Page 148Inflation represents a very large and important tax on the national debt ... As a first approximation their nominal value will be constant (although if ... Found inside – Page iThis essential book gives you the tools you need to identify and qualify investments and assess business strategy and performance. Found inside – Page 36This was a successful period for the policy, as both inflation and trade-balance goals were met. ... indexes, relating to the increase in the share of the service sector in the economy and to the effects of changes in the tax system. ... This was apparent in hidden inflationary pressures that began to accumulate when fiscal and monetary policy became more expansionist. ... between the first quarter of 1992 and the second quarter of 1993, when a policy of stable nominal exchange rates and ... Found inside – Page 1367While the 1981 tax cut passed by Congress was on balance a very positive ... of higher tax rates associated with inflation - related increases in nominal ... Found inside – Page 219Inflation also directly produces revenue for the government , and the incidence of this tax is borne in proportion to holdings of nominal money balances.10 This direct yield of revenue takes two forms . On the one hand , there is the tax on ... Found inside – Page 217The real interest on a loan is the nominal rate minus the inflation rate. ... Inflation can also impose hidden tax increases. Found inside – Page 217While the 1981 tax cut passed by Congress was on balance a very positive ... of higher tax rates associated with inflation - related increases in nominal ... Found inside – Page 68Macroeconomic austerity, i.e. tight monetary and fiscal policies, should avoid inflationary spiral, balance domestic demand with domestic production and ... Found inside – Page 359Inflation is a hidden tax on " nominal balances . " That is , people who hold bonds and bank accounts in dollars lose the value of those accounts when the ... Found inside – Page 19The latter , which are mostly hidden and distributed over time , require considerably more ingenuity to locate , identify , and measure . ... of the capital stock , depreciation , inventories , and so forth , results in an increase in real tax rates when prices and nominal income rise . Finally , inflation ( even if anticipated ) serves in effect as a government tax on the private sector's holdings of cash balances . Found inside – Page 160The nominal rate of interest is determined by measuring profit against nominal ... by inflation can lead to paper profits that are subject to taxation. Found inside – Page 1367While the 1981 tax cut passed by Congress was on balance a very positive ... of higher tax rates associated with inflation - related increases in nominal ... Found inside – Page 22After all , inflation not only increases the cost of public services but also drives up the nominal tax base , thereby increasing the revenue which is ... Budgets at various levels of government were on balance affected rather differently by the inflation . ... because they have been able to enjoy the gesture of tax reduction ( which in fact is only an offset to hidden increases ) and to expand programs without ... " -John Maynard Keynes, A Tract on Monetary Reform (1923) A Tract on Monetary Reform (1923), by British economist John Maynard Keynes, is a masterly analysis of the world monetary situation at the beginning of the twentieth century. Found inside – Page 207For instance, most tax and welfare systems are not really sufficiently ... that inflation can be interpreted as a so-called “hidden tax” on holding cash. This volume, edited by Mario I. Blejer and Adrienne Cheasty, is organized around four issues: the adequacy of summary measures of the fiscal deficit, conventional and adjusted deficits, coverage (size) of the public sector, and the public ... Found inside9.1.3 Inflation Tax There is a potentially positive side to the inability ... be paid for by the citizens who hold their wealth in nominal balances. Found inside – Page 555inflation. If they have, annual real tax increases may be necessary in order for the government to maintain the present level of services; even if the costs ... The financial accelerator in a quantitative business cycle framework (B. Bernanke, M. Gertler and S. Gilchrist). Part 7: Monetary and Fiscal Policy. 22. Political economics and macroeconomic policy (T. Persson, G. Tabellini). 23. Found inside – Page 373Again, repayment of (real) principal (included in nominal interest ... There are some hidden forms of taxation that offset some of the federal budget ... Found inside – Page 170The tax base to which the inflation tax relates is then only the prudential ... in terms of the nominal rates on them vertically upwards by the same amount. Found inside – Page 22... by the hidden tax of inflationary money creation or by foreign borrowing . ... Moreover , the depreciation of the nominal exchange rate tended to lag ... Found inside – Page 208On the other hand, if interest rates increase in response to inflation, counting nominal interest payments as costs but taking no credit for the decrease in ... Found inside – Page 207If inflation is a “hidden tax” the policy is politically tempting precisely ... If politicians can easily spend beyond means, needn't balance budgets, ... Found insideOn the other hand , it can lose resources by deflating away the real value of tax receipts that are fixed in nominal terms . ... and its associated inflation to reduce the real value of their spending on goods and services to the extent this spending is fixed in nominal terms . ... For example , the hidden seignorage tax is allocated across cohorts by using data on average real money balances by age and sex . Found inside – Page 138A simple yet unsound method of overcoming GGD is inflation generated, ... when inflation decreases GGD and GD from higher inflows of taxation). Found inside – Page 182recent years was much smaller - even if the inflationary taxation of cash balances in the hands of the public ( and in banks ) is ... surplus and for government purchases abroad was only moderately higher in nominal terms in 1979 ( excluding the financial items in ... A provisional estimate of the hidden subsidy in housing loans in 1979 shows that it was about equal to the losses incurred on cash holdings . Found inside – Page 139To appreciate the fiscal side of inflation, it is perhaps helpful to look back on ... Usually, the inflation tax represents only a relatively small part of ... Found inside – Page 386With given tax rates , revenue ( in peso terms ) from tariffs ... balance ” analysis if we think of interest payments as being invisible tradables imports ... This book, by a staff team in the IMF Institute, contains a series of workshops that introduce the process of formulating a hypothetical macroeconomic and structural adjustment program, which is a central element in the financial ... Found inside – Page 11... and with the same acknowledgment of "hidden debts," the debt-GDP ratio would ... Fixed nominal Chapter 1: Fiscal Policy, Inflation, Balance of Payments 11. Found insideFinancial repression (legal restrictions on interest rates, credit allocation, capital movements, and other financial operations) was widely used in the past but was largely abandoned in the liberalization wave of the 1990s, as widespread ... Found inside – Page 61After - tax U.S. profits corrected the inflation - induced increase in operating costs ( IVA , straight - line CCA , and loss on cash balances ) , plus net ... 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