Eliminate government reliance upon inflationary finance

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Based on the definition that a fiscal consolidation, is an increase in taxes, that puts fiscal authority on a sound financial footing that could eliminate the government's reliance upon inflationary finance and the problem of "fiscal dominance".

Please provide me with an explanation on the following statement: "A tax increase that is implemented as part of an inflation stabilization should be viewed as a change in the form of the tax structure, not as an increase in the overall tax burden".

Explanation to understand the statement does not mean i am going to write word for word of your explanation if i am presented with a similar question

Reference no: EM132422419

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