The Cantillon Effect and the Mesas Effect

Inflation is sometimes called an inflation tax because whoever spends it first gets that initial benefit. Other early spenders also get to receive higher incomes before prices rise like at their own grocery store. But then later on in that chain, as I said, then there are losers. There are people whose incomes have not risen and might not ever rise, but they have to pay the higher prices. So this sort of imbalance in the way money is introduced into economy, as you said, is called the cantillon effect. In the case of the Mises effect, which is a particular type of the Cantillon effect, it's when the money enters the economy through credit markets and causes all sorts of