Can Inflation Be Controlled?

Can Inflation Be Controlled?

Can Inflation Be Controlled?

Can Inflation Be Controlled?

Excerpt

The economic problem with which this book is concerned is strikingly indicated in the diagram on the accompanying page, which reveals the wide variations in the general level of commodity prices in modern times. The phenomenon of rapid changes in the price level is one of the oldest subjects of discussion and controversy in the realm of economics. This is, of course, attributable to the fact that rising prices (inflation) produce grave inequities in the distribution of income, enriching some groups while impoverishing others, and that falling prices (deflation) are commonly attended by general economic depression and widespread unemployment.

Many and varied explanations of rising prices have been advanced. In early times they were commonly ascribed to the extravagance of rulers, the activities of speculators, or the extortions of middlemen and monopolists. But they have also long been conceived to be in some way related to monetary conditions or policies. It is said that when Alexander, in the fourth century B.C., used the bullion which had been accumulating for two centuries in the Achaemenian treasuries in paying his mercenary legions, the "sudden increase in the volume of currency worked havoc among the peasants and artisans. Prices soared, and the financial revolution reduced to pauperism an element in the body social which had hitherto enjoyed . . .

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.