Front Page Titles (by Subject) Government Inflation - Literature of Liberty, January/March 1978, vol. 1, No. 1
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Government Inflation - Leonard P. Liggio, Literature of Liberty, January/March 1978, vol. 1, No. 1 
Literature of Liberty: A Review of Contemporary Liberal Thought was published first by the Cato Institute (1978-1979) and later by the Institute for Humane Studies (1980-1982) under the editorial direction of Leonard P. Liggio.
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“Financing Government Through Monetary Expansion and Inflation.” Federal Reserve Bank of St. Louis Review (USA), 57 (1975): 15–23.
Inflation or monetary expansion primarily benefits the Federal Government. Monetary expansion, whether or not accompanied by actual rises in the price level, taxes the wealth of money holders. Such inflation dilutes the purchasing power of money.
Unanticipated price rises further reduce the real value of monetary assets and liabilities. This activity transfers wealth from net monetary creditors to net monetary debtors. Inflation decreases the real value of government debt and thus transfers wealth from bondholders and money holders to taxpayers and to beneficiaries of government spending programs. Correct anticipation of inflation would tend to reduce such transfers. Furthermore, reforms such as (a) removing the ban against paying interest on demand deposits (checking accounts), and (b) indexing income taxes and security prices to reflect the workings of inflation would reduce the degree to which inflation and monetary expansion contribute to government finance.
Monetary expansion and inflation, like income and other taxes, redistribute purchasing power from the private sector to the public sector (government spending) and among some privileged members of the private sector. Unlike other taxes, however, inflation is not legislated specifically, but results from the actions of the Federal Reserve.