A Note on Taxation and Inflation

B.H. Higgins

Economics and Finance in Indonesia, 1953, 20-27

Abstract: The cold war has resulted in levels of Government spending in advanced countries far bigger than tbe postwar deflationary gaps as estimated by the most pessimistic of tbe pessimists. Deflationary gaps have been over-filled, and the postwar situation in tbe advanced countries bas been one of chronic inflation rather than chronic underemployment. Tbe high level of demand in tbe advanced countries has also aggravated tbe chronic inflationary pressure in tbe less developed countries It is natural, therefore, that attention of economists and laymen alike should have tarnqjl from public* standing policy to tax policy.

Date: 1953
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