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The way I understood it, it's a passive tax done by central bank. They take the value of money you hold and depreciate it without touching it. They do it year by year or depending on what government your in. It's a cruel system that encourages people to spend now. Else your 1$ will be less than 1$ in the next year it's cruel to those people living paycheck to paycheck wanting to save money for big purchases are forced to take loans with interest else you will always be playing catchup making you pay more in the long run. Honestly why would be so worried about people not spending we have survive long before capitalism even exist this system also encourage the destruction of our environment.