Inflationary Pressures Quotes

Increases in money supply are what constitute inflation, and a general rise in prices is the symptom.

No central banker would disagree with the proposition that inflation is primarily a monetary phenomenon. Not one of them will disagree that every inflation has been accompanied by a rapid increase in the quantity of money and every deflation by a decline in the quantity of money.

The monetary managers are fond of telling us that they have substituted 'responsible money management' for the gold standard. But there is no historic record of responsible paper money management ... The record taken, as a whole is one of hyperinflation, devaluation and monetary chaos.

Lunchroom economic conversations are inevitably graced with at least one statement from an old-timer along the lines of, 'In my day, we walked 10 miles in the snow just to get to the recession.' In fact, the nature of recessions hasn't changed much over the years.

Two hundred years ago the first liberal economist, Adam Smith, warned businessmen that they could absorb only a certain amount of rigidity. In the easy days after World War II... wage rises could be financed out of inflationary price increases.

Prolonged inflation never 'stimulates' the economy. On the contrary, it unbalances, disrupts, and misdirects production and employment.

With old inflation riding the headlines, I have read till I am bleary-eyed, and I can't get head from tails of the whole thing. ... Now we are living in an age of explanations-and plenty of 'em, too-but no two things that's been done to us have been explained twice the same way, by even the same man. It's and age of in one ear and out the other.

The problem is, to have prices fall would work fine if we didn't have all these built in rigidities on downward prices, because then things don't adjust, and that's how we have recessions and depressions, is prices and costs don't adjust together and they get out of whack, and we end up with dislocations.

Once the dollar begins to collapse beneath the weight of all this new deficit spending, accumulation of contingency liabilities and the socialization of our economy, commodity prices and interest rates will head skyward.

The world economy today is recovering slowly, and there are still some destabilising factors and uncertainties. The underlying impact of the international financial crisis is far from over.

Worrying about inflation now is like worrying about the measles when you might get the plague.

Britain was set to repeat the boom-bust cycle that led to 15 per cent. interest rates for one whole year in the early 1990s.

When gasoline and rubber are rationed, electric power and transport facilities are becoming increasingly scarce, and manpower shortages are developing, it is difficult for people to understand their increased use for other than the most vital needs of war.

There are economic risks if we leave, economic risks if we remain.

The future path of the federal funds rate is necessarily uncertain because economic activity and inflation will likely evolve in unexpected ways. For example, no one can be certain about the pace at which economic headwinds will fade. More generally, the economy will inevitably be buffeted by shocks that cannot be foreseen.

One factor that favors easier adjustment in EMEs is that U.S. monetary policy normalization has been and should continue to be gradual, as long as the U.S. economy evolves roughly as expected.

Latin Americans are all too familiar with the boom and bust cycles associated with economic populism.

The Italian economy has been held back for decades.

The cycle of jobless youth, uncertainty about the future, depressing consumption, and weak investment and stresses on both the supply and demand side of economies are all thorns in the wheel of capitalism.