Quote from: Verse on September 18, 2014, 11:47:40 PM

Quote from: johncarpe64 on September 18, 2014, 11:17:31 PM

Governments actually like to try to keep inflation as low as possible. If a country has too high of inflation then the standard of living of it's citizens would decline and if it were to stay like that for long enough the citizens would leave and try to go somewhere with better economic opportunities.

I do not disagree. However most governments run on a cycle of debt, issuing bonds and repaying those loans through taxes. Bond yields are paid in the same fiat they are bought with. If inflation goes up, the real value of those yields and therefore those payments decreases. So inflation allows a government to decrease the burden of their payments.

I'm suggesting there's a conflict of interest, not a conspiracy. I understand that governments do not regularly cause rapid inflation in order to pay off debts, but some have. Germany after WWI is a prime example.

What governments actually try to do it to grow their economy so their tax revenue goes up so they can repay the debt with a smaller share of total tax revenue. High inflation will generally hamper economic growth.

As I said above if inflation is too high then people will emigrate to places where inflation is lower and economic opportunities are more. If people are leaving a country because of high inflation then the country will have lower tax revenue which means they will have to use more resources as a percentage of total tax revenue to repay their debt