As government budget deficits have tapered and even went away there have been many suggestions to deal with potential budget surpluses (Dahlgren 2008).
In the 70s we had a gigantic signal of inflation and higher interest rates--both increased to twice digits. Republicans love to accuse Jimmy Carter for this, but it occurred before he came to office. It was the outcome of:
A long, unproductive conflict.
A rapid increasing two-fold of the cost of gasoline.
Short Term
The short period effect is that it takes cash out of circulation, cash that would else be accessible to scrounge ...