Tanzi effect

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English

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Etymology

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Named after Italian economist Vito Tanzi who explained the effect in 1977.

Noun

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Tanzi effect (plural Tanzi effects)

  1. (economics) A phenomenon in which a period of high inflation in a country which results in a decline in the volume of tax collection and a deterioration of real tax proceeds being collected by the government of that country.
    Synonym: Olivera-Tanzi effect

Further reading

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