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higger inflation due to higher M that can lead to higher intrest rates therefore limitting the revenue an intrest baring currency or money '' Govt would need to raise r (increase the opportunity cost of holding non-interest paying currency which reduces demand for currency) to prevent inflation.'' , can generate and putting it into a laffer curve therefore limitting the revenue bonds can generate since the central banks cant anymore buy its own newly issued tresury bonds at a lower rate putting bonds into a laffer curve could only hold in either in a steady state or during a situation wher the goverment spends above the capacity utilisation limit and creates an inflationary gap which are the only cases equation of exchange MV=PT holds relative purchasing parity S1 / S0 = (1 + Iy) ÷ (1 + Ix) holds unless you unironically are a monetarist or believe in the neo classical theory of inflation which is empirically wrong however this might be an intresting concept as a rule of thumb that holds only in cases of high inflation
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Jan 5, 2018