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In chapter 4, the book talked about cost of living adjustments and inflation. I was wondering How the Social Security Administration attempts to protect beneficiaries from the effects of inflation?

Savannah Corey

In the section about the causes of hyperinflation, Mankiw illustrates how most hyperinflations originate when the government is unable to borrow. With regard to our conversation on Friday about the government borrowing from the private sector, is seigniorage a likely solution for the government to turn to if the American public starts to view the government as a bad credit risk? And would this ultimately lead to higher taxes placed on the already suffering population in order to recover from the deficit?

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