Inflation jumped prices up 3% of the tax adjusted price of goods and services when the GST went into effect.
Inflation is not caused by taxes (fiscal policy). Inflation is wholly a monetary (policy) phenomenon. Do you know the difference?
Yes I know the difference, so lets just say the Australian price indexes based on price of goods and services rose 3% beyond what was accountable for the 10% VAT replacing the wholesale tax imposed.
http://www.abs.gov.au/ausstats/abs@.nsf/0/43742a462f6606ecca256e7d0000264a?OpenDocument
Say whatever you want. Inflation is a monetary issue, not a fiscal one. If prices rose 3%, it was due to monetary policy.
What school of thought would argue otherwise?
AG, can you find some example of a country the has a high rate NRST so we can compare it to the Australian experience with a GST.