The Merits of Inflation
Title:
The Merits of Inflation
Word Count:
1658
Summary:
In a series of speeches designed to defend his record, Alan Greenspan, until recently an icon
Keywords:
Article Body:
In a series of speeches designed to defend his record, Alan Greenspan, until recently an icon
Greenspan and his ilk seem to be fighting yesteryear’s war against a long-slain monster. The o
As economists are wont to point out time and again, inflation is not the inevitable outcome of
Indeed, it is arguable whether inflation was subdued - in America as elsewhere - by the farsig
Quoted by "The Economist", Dresdner Kleinwort Wasserstein noted that America’s industry is alr
Depending on one’s point of view, this is a self-reinforcing virtuous - or vicious cycle. Cons
Should the USA reflate its way out of either an impending double dip recession or deflationary
It is universally accepted that inflation leads to the misallocation of economic resources by
They postpone investments - or over-invest and embark on preemptive buying sprees. As Erica Gr
Still, the late preeminent economist James Tobin went as far as calling inflation "the grease
These disparities among essentially similar economies reflect pervasive disagreements over wha
The sin committed by most central banks is their lack of symmetry. They signal visceral aversi
Inflation rates - as measured by price indices - fail to capture important economic realities.
Current inflation measures neglect to take into account whole classes of prices - for instance
Consider a deflationary environment in which stagnant wages and zero interest rates can still
The methodology of computing inflation obscures many of the "quantum effects" in the borderlin
Workers may agree to a 2 percent pay rise in an economy with 3 percent inflation. They are unl
Economists in a November 2000 conference organized by the ECB argued that a continent-wide inf
The new consensus is that the price for a substantial decrease in unemployment need not be a s
Vanishingly low inflation - bordering on deflation - also results in a "liquidity trap". The n
This has been the case in Japan in the last few years and is now emerging as a problem in the
This may have led to the sharp devaluation of the yen in recent months. Inflation is exported
But the upshots of inflation are fiscal, not merely monetary. In countries devoid of inflation
Thus inflation increases the state’s revenues while eroding the real value of its debts, oblig
The outcomes of inflation, ironically, resemble the economic recipe of the "Washington consens
Inflation also improves the lot of corporate - and individual - borrowers by increasing their
The connection between inflation and asset bubbles is unclear. On the one hand, some of the gr
Still, the absolute level of inflation may be less important than its volatility. Inflation ta
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The Merits of Inflation
Word Count:
1658
Summary:
In a series of speeches designed to defend his record, Alan Greenspan, until recently an icon
Keywords:
Article Body:
In a series of speeches designed to defend his record, Alan Greenspan, until recently an icon
Greenspan and his ilk seem to be fighting yesteryear’s war against a long-slain monster. The o
As economists are wont to point out time and again, inflation is not the inevitable outcome of
Indeed, it is arguable whether inflation was subdued - in America as elsewhere - by the farsig
Quoted by "The Economist", Dresdner Kleinwort Wasserstein noted that America’s industry is alr
Depending on one’s point of view, this is a self-reinforcing virtuous - or vicious cycle. Cons
Should the USA reflate its way out of either an impending double dip recession or deflationary
It is universally accepted that inflation leads to the misallocation of economic resources by
They postpone investments - or over-invest and embark on preemptive buying sprees. As Erica Gr
Still, the late preeminent economist James Tobin went as far as calling inflation "the grease
These disparities among essentially similar economies reflect pervasive disagreements over wha
The sin committed by most central banks is their lack of symmetry. They signal visceral aversi
Inflation rates - as measured by price indices - fail to capture important economic realities.
Current inflation measures neglect to take into account whole classes of prices - for instance
Consider a deflationary environment in which stagnant wages and zero interest rates can still
The methodology of computing inflation obscures many of the "quantum effects" in the borderlin
Workers may agree to a 2 percent pay rise in an economy with 3 percent inflation. They are unl
Economists in a November 2000 conference organized by the ECB argued that a continent-wide inf
The new consensus is that the price for a substantial decrease in unemployment need not be a s
Vanishingly low inflation - bordering on deflation - also results in a "liquidity trap". The n
This has been the case in Japan in the last few years and is now emerging as a problem in the
This may have led to the sharp devaluation of the yen in recent months. Inflation is exported
But the upshots of inflation are fiscal, not merely monetary. In countries devoid of inflation
Thus inflation increases the state’s revenues while eroding the real value of its debts, oblig
The outcomes of inflation, ironically, resemble the economic recipe of the "Washington consens
Inflation also improves the lot of corporate - and individual - borrowers by increasing their
The connection between inflation and asset bubbles is unclear. On the one hand, some of the gr
Still, the absolute level of inflation may be less important than its volatility. Inflation ta
This is a demo version of txt2pdf v.10.1
Developed by SANFACE Software http://www.sanface.com/
Available at http://www.sanface.com/txt2pdf.html