In the end, and it is a known quantity, both mean and bounds. And it is direct inflation, in its entirety, so your tax dollar reverts to price neutrality. Thus it is all of inflation, anybody got any other price index has to call it something else, that is really great news. Inflation appears at a constant term in the balance sheet, everything else has another explanation, sorry.
We can live with that tax, Congress can split the double spending between House and Senate, and they can run a more balanced official budget. We are pricing the ex ante losses, and getting the money for that from foolish voters. Actually, the ex ante bounds are well known, it is the composition which cannot be known. Hence the revenue sharing, as the unknown becomes know, price and pay it with liquidity allocated for that purpose, the inflation tax.
The Fed cannot issue inflation and set interest charges, ad hoc. Traders bet the one relative to the other.
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