Guy in the Hat

PixelMatt

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The Art of Inflation

Sun Tzu, observing but not necessarily understanding the correlation between an increase in the money supply and inflation:

“When soldiers are near, things sell dearly. When things sell dearly, wealth is exhausted. When wealth is exhausted, people are hard pressed by local taxes.”

Presumably, the locals have wages fixed by law or tradition, which leaves little money for taxes once soldiers paid from afar bid up prices.