[bigwill]

This "hidden tax" applies to the government as well. Inflation expectations are baked into the valuation of financial instruments. For example, if investors think inflation is going to be high they'll demand a higher interest rate on their bonds. Inflation is part of the interest rate. This includes the interest rates at which the government borrows, so they're not particularly jazzed about a high inflation "tax" either. So if you're sitting on dollars and paying this tax, you can rather easily be compensated for it by lending that money.