The Control of Inflation
Whatever our differences in diagnosis, I suppose that the majority of us would agree that some at least of the difficulties in the post-war situation have been due to the presence of inflation. We should also agree, I should hope, that continuation of inflation of this order is incompatible with the continuation of an orderly society. Some small upward movement of prices as time goes on may be supportable; there is some case for the view that, by loosening the dead hand of past debt and perhaps by maintaining a rather brisker state of trade than would otherwise prevail, it may be even an instrument of progress. But a trend which is capable of halving the value of savings within a decade is not of this order; sooner or later it must come to some disorderly conclusion. There is some justification therefore for devoting a little time to examining ways of controlling it.
KeywordsMonetary Policy International Relation Collective Bargaining Money Supply Bank Credit
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