Quote:
Originally Posted by Fuzz
Would raising consumption taxes as a method of lowering inflation work as well as raising interest rates, but with the added benefit of keeping government borrowing costs lower, and increasing funding to help lower income earners deal with inflation? You would want to adjust them down once the economy cooled.
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This Modern Monetary Theory. Use taxation and debt repayment rather than interest rates to modulate the market. The problem is taxes are political rather than set by a an arms length agency.