• UnderpantsWeevil@lemmy.world
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    13 days ago

    Gradually inflating the currency

    Gradual inflation that happens under the national growth rate is fine. You need more currency moving at a faster rate in an expanding economy.

    Gradual inflation in a contracting national growth rate is a huge problem.

    Thomas Picketty lays this all out mathematically in “Capitalism in the 21st Century”, and builds a strong economic case for a high graduated tax rate as a means of tying inflation back to real economic growth.