Central Bank of Brazil: inflation tax risked hyperinflation
A Central Bank of Brazil paper published in July tests hyperinflation theories using the inflation tax curve, and finds that Brazil was at risk of hyperinflation.
The paper tests hyperinflation theories using the inflation tax, or Laffer curve. The Laffer curve measures the relationship between revenue raised by taxation and all possible rates of tax, and is often used to illustrate the concept of taxable income elasticity.
The paper's authors, Fernando de Holanda Barbosa and Tito Nícias
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