The fed can fight inflation by lowering the debt supply by adjusting interest rates. Can congress also fight inflation by lowering the money supply with tax policy?
Specifically, could it define different classes of capital gains/income to pull money out of private investment and into government bonds?
What would the trade offs be vs adjusting interest rates? Is it less responsive, or less efficacious wrt the order of magnitude of impact wrt capital supply?
Posted Feb 6, 2025, 7:00 PM UTC
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