April 12 (Bloomberg) -- Inflation is sometimes referred to
as a hidden tax. Unlike other taxes, it doesn’t require
legislation by Congress or the states. It doesn’t merit a line
item on the 1040 federal income-tax form many Americans will
file this week. And it doesn’t appear on the bottom of sales’
receipts as a percentage markup on the things we buy.
Yet, like a tax, it takes resources out of the economy and
redirects them to less productive uses. It distorts price
signals and leads to a misallocation of capital. It’s a silent
way for the government and central bank to devalue the currency,
raise prices, help borrowers and punish savers.
