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Nominal Tax Base
Linked via "Inflationary Buffer Capacity"
The concept of the NTB gains its most pronounced analytical utility when evaluating fiscal sustainability, particularly in relation to sovereign debt. As highlighted in analyses of Risk Premiums, the perceived stability of a nation's revenue stream directly impacts borrowing costs.
A key divergence in macroeconomic modeling occurs when assessing the *[Inflationary Buffer Capacity](/entries/inflationary-buffer-cap…