Tanzi effect

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English[edit]

Etymology[edit]

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

Noun[edit]

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[edit]

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