Proponents of using the inflation tax to finance government budget deficits argue that:these

Proponents of using the inflation tax to finance government budget deficits argue that:

these

deficits would be far worse otherwise.

while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse.

the economic slowdown produced by the inflation tax is preferable to the hyperinflation that would occur in the absence of the inflation tax.

inflation is ultimately beneficial in the long run.