Inflation — Should it be Cured or Endured?
Inflation is obviously one of the more glamorous subjects in economics; and its relevance and appeal are as widespread as they seem to be everlasting. No government in the world, and much less a democratically elected one, can be indifferent to it; and it is for the control of inflation, for example, that the industrially-advanced countries today seem willing to tolerate the unemployment of more than 30 million of their citizens. For the developing countries inflation has had the same kind of fascination as original sin — a temptation that has to be resisted even though it cannot be overcome altogether. The resulting ambivalence has often led to alternative bouts of bold developmental efforts and cautious stabilisation policies, which in turn have lent their growth paths a kind of cyclical character. One advantage of talking about inflation, therefore, is that one is almost always relevant.
KeywordsInterest Rate Monetary Policy Fiscal Policy Money Supply Budget Deficit
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