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History shows Inflation occurs when the supply of goods & services reduces or the supply of money increases. High inflation accompanies high government activity when government expenditure exceeds their tax receipts resulting in various forms of debasing the coinage and increasing the money supply. Inflation becomes a tax on everyone's savings.- out goes your pension. In moderate to high inflation most businesses do not provide an income for their owners - as Inflation requires them to provide more capital.

Impact from Government is that pressure for more services overwhelms arguments for balanced budgets. While impacts from Banking Stability indicate a succession of banking crises - which tend to reduce inflation, though of course causing many other problems.


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