La Patilla (2015) | We’ve arrived / 4. Dolarization

Inflation is the most unfair of all taxes. It causes terrible damage to the economy and is particularly harmful to the less privileged citizens. It limits growth and the creation of wealth and is essentially preventable.

The main cause of inflation is excessive money supply, and has always been. The nations have understood that by controlling the issuance of money they can control liquidity and thus avoid tremendous suffering to the population. Today, the most prosperous nations have virtually no inflation.

The most drastic and quick way to reduce inflation is to tie the issuance of money to a strong and stable currency, which many nations have done with positive results.

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