In the short run, it’s not money printing that determines inflation, it’s the velocity we have to worry about. Once velocity picks up, there’s little policy makers can do to slow it down
Discussion
Higher taxes would reduce velocity right? VAT/income tax will shrink the money supply in proportion to the velocity. If money moves really fast it will be taxed much more than if it just sits still in a bank account.
I do not envy the politician that want to try and enact this as a policy... 🙈