International Encyclopedia of Public Policy and Administration - Vol. 2

By Jay M. Shafritz | Go to book overview

FIGURE II. PERCENTAGE OF INCREASE IN CONSUMER PRICES

higher average levels of inflation. Argentina, which experienced near-hyperinflation in 1989 and 1990, is much less tolerant of inflation today.

In the United States, as well as many other industrial countries, tolerance for inflation increased in the first three decades of the postwar period. United States consumer prices rose an average of 1.8 percent per annum in the 1950s, 2.3 percent in the 1960s, and 7.1 percent in the 1970s. The rapid inflation in the 1970s, triggered by the two oil shocks, led to a greater commitment to controlling inflation in the United States and other industrial countries. United States consumer price increases slowed to 5.5 percent in the 1980s and then 3.6 percent in the first half of the 1990s. Figure II graphs the inflation experience of the United States and three other major industrial economies in the postwar period.

SANDRA D. WILLIAMSON


BIBLIOGRAPHY

Friedman, Milton, 1987. "Notes on the Quantity Theory of Money". In Kurt R. Leube, ed. The Essence of Friedman. Stanford, CA.: Hoover Institution Press.

Parkin, Michael, 1994. Economics, 2d ed., Reading, MA: Addison-Wesley.

Phillips, A. W., 1958. "The Relation Between Unemployment and the Rate of Change of Money Wages in the United Kingdom, 1861-1957". Economica (November).

Samuelson, Paul A., and William D. Nordhaus, 1992. Economics, 14 ed. New York: McGraw Hill.

INFORMAL ORGANIZATION SYSTEMS.

The totality of uninstitutionalized, multidimensional, and nebulous networks of relationships between individuals or groups within an organization.

Another name for these types of organizational systems are collateral, parallel, reflective, or shadow structures ( Huczinski 1987). D. E. Zaud ( 1981) defined this type of entity "as supplemental organization co-existing with the usual, formal organization." These organizations usually emerge spontaneously, but they may also be created purposefully to deal with "ill-structured" problems. Formal organizations often place demands on individuals that are inconsistent with their needs for activity, independence, flexibility, and superordination. Informal organizations arise to fulfill these needs ( Argyris 1957).

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