The Theory and Practice of Desirable Inflation
|Economics is not called the dismal science for nothing. A generation ago inflation was the great enemy of central bankers and prosperous economies. In the early 1980s Paul Volker Chairman of the Federal Reserve pushed the Fed Funds rate to 20 percent to end the crippling inflation of the previous decade. His success led central banks around the world to adopt inflation targets and the trend in worldwide inflation has been declining ever since. Low, stable inflation would seem to benefit business, individuals and the overall economy. But quite suddenly, we are in a world where inflation is too low and the world’s major central banks are desperately trying to induce rising prices. How did economics arrive at this pass? Join us for a tour of the history of inflation and the economic response.
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