Tanzi effect

noun

A phenomenon in which a period of high inflation in a country which results in a decline in the volume of tax collection and a deterioration of real tax proceeds being collected by the government of that country.

Meanings

nounTanzi effect (plural Tanzi effects)

plural Tanzi effects

  1. economicsA phenomenon in which a period of high inflation in a country which results in a decline in the volume of tax collection and a deterioration of real tax proceeds being collected by the government of that country.

    Synonyms: Olivera-Tanzi effect

Synonyms & antonyms

nounA phenomenon in which a period of high inflation in a country which results in a decline in the volume of tax collection and a deterioration of real tax proceeds being collected by the government of that country.

Origin

Named after Italian economist Vito Tanzi who explained the effect in 1977.

Full word history & related roots →
Cite this entry
APA

Tanzi effect. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/Tanzi%20effect

MLA

“Tanzi effect.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Tanzi%20effect. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “Tanzi effect,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/Tanzi%20effect.

Source: Tanzi effect on Wiktionary, CC BY-SA 4.0.