This loss of value is also known as the inflation tax. Globalization, deregulation, and innovation make it easier for citizens to move their wealth out of nominal assets in the domestic currency should their government resort to an inflation tax. When the tax base shrinks in response to inflation, governments have a reduced incentive to resort to the inflation tax.
*** Director of Ceremonies, Your Excellency, The President of the Republic of Namibia, Dr Hage Geingob, Deputy Governors of the Bank, The entire Management and Staff of the Bank of Namibia, Members of the Media, Ladies and Gentlemen, Good morning, 1.