Tanzi effect

English

Etymology

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

Noun

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

• Tanzi effect on Wikipedia.Wikipedia