DEPRECIATION OF MONEY

Abstract

The author recognizes the potential for high inflation rates to affect people differently depending on the strength of their bargaining power and circumstances, and argues that even distribution of inflationary effects should be a high government priority. The article considers three potential ways of doing so: including protective clauses in individual contracts, anchoring money obligations to the cost of living and equalizing inflation by income tax reform. It prefers the final proposal, not as a cure to inflation, but as a means of equitable sharing of the economic risk.