Inflation for EB 2 economies

[Ibrahim]

Government revenue is not the economy. What is being proposed for methods to model inflation is entirely the opposite to what has been observed in practice. Inflation is generally caused when demand for goods outstrips supply, leading to suppliers upping their prices, which in turn leads to a decline in the value of currency.

I think we would all agree that higher taxes lead to more government revenue, and are the primary instrument of increasing government revenue in R:TW. However, Higher taxes leads to lower demand (As people have less money to spend on togas, olive oil etc.), which would lower inflation. In the simulation proposed, inflation would be weakened by lowering taxes and increasing government spending; the exact opposite of what happens in reality!

true..very true.

which actually gives me an idea: can inflation caused by the government (namely by debasing the currency), be implemented in M2:TW? I do know that in ancient times-particularly Rome, debasement of Gold currency led to a hyperinflation in the 3rd century AD. if this can be done, I'm all happy.

EDIT: Keynes or Austrian?