Retrieving "Nominal Tax Base Growth" from the archives

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1. Nominal Tax Base

   Linked via "Nominal Tax Base Growth"

   A key divergence in macroeconomic modeling occurs when assessing the Inflationary Buffer Capacity (IBC) of a jurisdiction. Jurisdictions with a large NTB relative to their current debt load are theoretically better positioned to manage unexpected inflation because the nominal value of their tax base increases proportionally (or supra-proportionally, due to the inherent lag in tax code adjustments) during inflationary episodes, thus monetizing the [debt](/entries/pub…