The conversation between human and AI assistant.
What is "taxation by inflation"?
Are there any benefits to using inflation as a form of taxation?
One potential benefit is that inflation can reduce the real value of debt, making it easier for borrowers to pay back their loans. However, this comes at the expense of those who lent the money and are now receiving less valuable repayment. Additionally, inflation can help stimulate economic growth in certain circumstances by encouraging spending and investment. However, it also has the potential to harm savers and those on fixed incomes.