Aiden
Why not have a multi level tax structure for land tax. There are many examples of different tax levels that are introduced by parliament to effect tax payer’s behavior. However I do agree with your point of conservation land.

So the supply and demand effect kicks in whether it is base materials or staff that are in short supply or not. However I believe the low inflation today has a lot more to do with the collapse of discretionary funds available to the ever shrinking middle income earners. As the problem today around the world is that inflation is considered too low. It seems to me that if you put more money in the hands of the people at the bottom, they will just spend it, as opposed to the wealthy who will either spend on over priced luxuries, or more likely invest in the stock and bond markets. This was carried out some years ago to stave off the GFC in Australia I seem to recall, it was also suggested by helicopter Ben of the Fed a some time ago.

I can’t agree with you on your point regarding lower prices and high earners. They, in general buy on quality or scarcity not price. Also they tend to spend on goods that make up a very small part of the overall inflation numbers. Lets be honest they a very unlikely to nip down for a mac’er and fries no matter how low the price.

Sorry but I don’t understand what you mean regarding “all extra liquidity sums to zero.”

And the next bit has also gone over my head. My understanding is that banks lend out money based on what has been deposited by depositors. I understand that the ratio is dependent on the Basel capital requirements, which sets out percentages based on the asset backing the loan, which are placed in tier 1, 2 or, 3 etc. Are you telling me that there are no limits to what a bank can lend out?
Chris