Report on the United States (2)
Let me begin by setting forth a position on the features of the ‘new inflation’. First, the current widespread inflation across industrial countries is a ‘new’ inflation only in the sense that it is a phenomenon of the last ten years. The current inflation has not been largely determined by the supply behaviour of non-industrial countries. The basic cause of the current inflation is the same as the cause of all previous inflations — too much money chasing too few goods.
KeywordsInterest Rate Monetary Policy Federal Reserve Real Output Real Estate Investment Trust
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- 2.This section draws heavily upon the article by Denis S. Karnosky ‘Real Money Balances: A Misleading Indicator of Monetary Actions’, Federal Reserve Bank of St Louis, Review (Feb 1974) pp. 2–10.Google Scholar
- 3.The material in this section draws upon Leland B.Yeager, International Monetary Relations (New York: Harper & Row, 1966) pp. 269–72 and quotes from the League of Nations Study, The Course and Control of Inflation.Google Scholar
- See also, Frank D. Graham, Exchange, Prices and Production in Hyper-Inflation: Germany 1920–23 ( New York: Russell & Russell, 1930 ).Google Scholar
- 5.Rudolf Havenstein, ‘Defending the Policy of the Reichsbank’ (Address to the Executive Committee of the Reichsbank, 25 August 1923) in Fritz K. Ringer, The German Inflation of 1923 ( New York: Oxford University Press, 1969 ) pp. 93–6.Google Scholar