inflation

An interest-rate increase big enough to squeeze inflation back down in short order would cause a needlessly large rise in unemployment.

But a boost in growth could be enough to turn a small inflation problem into a bigger one.

The rate of inflation is just the tip of the iceberg. It might mean the beginning of a serious recession.

Fractional reserves expand the money supply, which, until the age of Keynes and Fisher, was called inflation.

The problem is, all that easy credit is generating bad debt and inflation.

Since the Fed can basically print money, investors would be wise to respect its ability to cause inflation if it desires.

By contrast, a policymaker trying to target a stability price index would have observed accelerating wage inflation.

How much creeping inflation do we want?

The target limit is short at the early stage, but tends to be longer when the inflation is stable.

Many seem to have bought them on this basis, as Tips now imply an inflation rate of 1. 1 per cent for the next 10 years.

The democratic Party used to be against the tax increase, but since the runaway inflation, it took a U-turn on it's tax policy.

While the Bank has left the door open for more QE, inflation has not moderated sufficiently for further QE to be announced.

Though the Fed does not expect deflation, last month it did say that "inflation could persist for a time below" optimal levels.

But it may be swayed by rising inflation, and a desire to fend off a risk of an overheating economy.

A low positive inflation is usually targeted, as deflationary conditions are seen as dangerous for the health of the economy.

Aware of the unrest sparked by past periods of high inflation, China's leaders make curbing it a priority.

In the long run, theory suggests that higher growth, other things equal, should mean higher interest rates for a given rate of inflation.

Economists said the surge in inflation also presented Asian central bankers with a conundrum that went against their instincts.

In a game of beggar-thy-neighbor, they're trying to keep inflation at home from soaring out of control.

Rapid economic growth is often accompanied by inflation.

He said the smaller auction and the seasonal tendency for inflation to rise in March supported demand for Tips.

The economy basically was kind of going nowhere and had inflation, which didn't seem to get cured -- kind of a malaise in the economy.

He said the May central bank data showed that the focus remains on inflation.

inflation : An increase in the general price level, resulting in a decline in the purchasing power of the monetary unit.

Although China has been reporting slowing price growth since May, inflation continued to rise in much of the rest of the region.

But it could also be something of an addiction to easy growth policies, inflation be damned.

Now that you know what to look out for, you won't have to worry about being caught unawares by inflation.

Accounting for the different levels of inflation between China and the U. S. , the yuan is rising at about a 10% a year.

This is no doubt that the elimination of hidden inflation pressure, like the United States block China's emergence as the financial crisis.

As a hedge, Gaines recently added Treasury Inflation-Protected Securities, or TIPS, to his and his wife's retirement accounts.

FOR much of the last century inflation was as prominent a feature of Brazilian life as football.

The recovery now under way will be feeble: deflation will remain a bigger threat than inflation for at least a year.

But the fear of eroding banks' margins seems to stand in the way of what would be a potent inflation-fighting tool.

Thus, for developed world, outside of food and energy, there is not the dynamic to see a sustained rise in across the board inflation.

However, there might be a problem if inflation is high or if deposits continue to leave the banks' balance sheets.

Monetarists assert that the empirical study of monetary history shows that inflation has always been a monetary phenomenon.

Malaysia was the least affected, with the food inflation rate at a shade below 5 per cent over the course of this year.

"We have to prepare for relatively high inflation in the coming decade and that's why monetary policy has to be relatively tight, " he said.

Simon Johnson, chief economist at the IMF, says: "We do not think there has been a big movement up in expected inflation globally. "

To help with fighting deflation, parliament is mulling whether to set the bank an inflation target above its current range of 0-2%.

Inflation might be a possibility sometime down the line, but the front-and-center threat to the economy is deflation.

And yet, with its rigid currency policy, China is fighting the inflation battle with one hand tied behind its back.

The rapid recovery in emerging markets, now a year old, is beginning to create a threat of inflation from China to Argentina.

These figures do not take account of changes in the rate of inflation.

The bank's monetary policy risks letting inflation get so far out of control that there won't be any way to gently step on the brake.

It is the first time the bank's fan chart, which projects where inflation is likely to lie nine times out of ten, has encompassed deflation.

A long-time governor of the Bank of England, Gordon Richardson, was fiercely opposed as he regarded it as a moral surrender to inflation.

He thought they should limit inflation by targeting the rate of growth of the money supply.

Bernanke has said the Fed would like to see inflation closer to 2 percent to show the economy is making a solid recovery.

Normally, and especially now, this is not a concern; a little bit of inflation is better than a little bit of deflation.

The bank has lost credibility as the inflation overshoot has persisted and its forecasts have proved incorrect.

The Bank should not focus only on inflation over the next two years, but on threats to price stability over a rather longer horizon.

Inflation hawks have been speaking up in the US lately, but are not getting much of a hearing.

Just as an inflation target is important, but does not by itself make central bankers credible, so a fiscal rule is a start, not a cure-all.

But inflation does not seem to be a threat with the current softness in the American housing market.

China has flirted with trying to tighten up its monetary policy to tamp down inflation, but it has not really taken decisive action.

The result of such a misguided strategy, according to his monetarist theory, would be inflation, not economic recovery.

Over longer time horizons, inflation expectations in the euro area seem to be well anchored at levels below but close to 2%.

'As a fast-growing economy, China should be able to tolerate higher inflation, let's say, 4% to 5%, ' she said.

How can a citizen know what is really happening on the inflation front, given that the government seems to be trying to hide the truth?

But he said he had not changed the goal because it underlined the government's determination to fight inflation.

However, as in the case of a falling tide, Beijing has been tightening credit to fight inflation for a year now.

'This counts as a pretty significant contribution to inflation over the long term, ' he said.

Considering that this quintile contributes almost 93% of aggregate savings, food inflation will have no impact on it.

I knew, therefore, that there was no reason to panic, as my future was secure even if inflation increased or a recession occurred.

Banknotes in circulation in circulation exceeds the amount of money actually needed, is one of the main causes of inflation.

Stuff will not enrich your life. It's so very easy to find yourself "keeping up with the Joneses" , succumbing to lifestyle inflation.

If it is only a short-term supply problem, inflation will ease with the next harvest.

That would depend on what caused it: a revival of inflation, say, or a shift in the balance between savings and investment.

Even today stray board members speak out on excesses in our financial markets and grumble that inflation lurks around the corner.

Better to explain carefully why high inflation is likely to prove temporary than to indulge in "futile gestures" , he said.

Currently, the quantity theory of money is widely accepted as an accurate model of inflation in the long run.

Wen said. He said Beijing will try to maintain relatively fast economic development while managing inflation.

Inflation will only become a problem if it spreads beyond food, but there is little sign of that at the moment.

To see if reality matched this theory, I plugged the numbers on overall inflation and core inflation since 1980 into a spreadsheet.

On balance, the chances are that, over the next few months at least, the Fed will worry more about inflation than about slower growth.

Inflation is often cited as one of the factors behind the major demonstrations in 1989.

The columnist Robert Samuelson tells the story in his book, just out in paperback, The Great Inflation and Its Aftermath.

The impact of inflation over the social economic environment of a country is one of the core questions in macroeconomic theory.

there seems to be an increasing tolerance for unemployment and moderate inflation.

China for several months was busily trying to tamp down on liquidity to keep inflation in check.

"They are trying to ease the rate of growth to reduce the prospects of inflation, " he said.

"The data is consistent with our view that growth recovery is going to be very weak, and that inflation is not a problem, " Lantz said.

Inflation figures published yesterday showed that there had been a slowdown in the rate at which prices are rising.

In both India and Indonesia, elections loom next year, and inflation still remains something of a bug-bear.

The Bank of England has been surprised that spare economic capacity has been a weak check on imported inflation.

We establish the combined regression-time-series model for Chinese inflation and compare its forecast results to that of regression model.

But the Bank of England remains convinced that inflation will retreat later this year as spare capacity bears down on prices.

Is there any doubt about this ongoing inflation capitulation and the beginning of sharp deflationary forces?

As skyrocketing prices of certain staples recently returned to earth, inflation seems to be easing.

"They are trying to ease the rate of growth to reduce the prospects of inflation, " he said.

"The data is consistent with our view that growth recovery is going to be very weak, and that inflation is not a problem, " Lantz said.

Inflation figures published yesterday showed that there had been a slowdown in the rate at which prices are rising.

In both India and Indonesia, elections loom next year, and inflation still remains something of a bug-bear.

The Bank of England has been surprised that spare economic capacity has been a weak check on imported inflation.

We establish the combined regression-time-series model for Chinese inflation and compare its forecast results to that of regression model.

But the Bank of England remains convinced that inflation will retreat later this year as spare capacity bears down on prices.

Is there any doubt about this ongoing inflation capitulation and the beginning of sharp deflationary forces?

As skyrocketing prices of certain staples recently returned to earth, inflation seems to be easing.

Gold's rapid rising, to a great extent is result of US dollar's negative interest rates. coupled with inflation, gold have to rise.

But the Bank of England remains convinced that inflation will retreat later this year as spare capacity bears down on prices.

Is there any doubt about this ongoing inflation capitulation and the beginning of sharp deflationary forces?

As skyrocketing prices of certain staples recently returned to earth, inflation seems to be easing.

Gold's rapid rising, to a great extent is result of US dollar's negative interest rates. coupled with inflation, gold have to rise.

There is no proof that, in the long run, property prices increase by any more than the rate of the growth of the economy plus inflation.

First, the clear and present danger, both now and for the next year or two, is not inflation but deflation.

However, it is simply not true that all the money we're printing today has to show up in a permanently higher rate of inflation.

We have yet to see whether Central Banks can handle the recovery without letting inflation get out of control.

But the country's frequent bouts with inflation suggest the measures might be imposed on at least some goods at some point.

Stakeholders expect to control the rising inflation situation, there is still room for interest rates of the Bank during the year.

However, it is simply not true that all the money we're printing today has to show up in a permanently higher rate of inflation.

We have yet to see whether Central Banks can handle the recovery without letting inflation get out of control.

But the country's frequent bouts with inflation suggest the measures might be imposed on at least some goods at some point.

Stakeholders expect to control the rising inflation situation, there is still room for interest rates of the Bank during the year.

With the economy in a very weak state and commodity prices falling, inflation does not appear to be a problem now.

And if inflation were to rise, then nominal GDP would surely expand alongside debt, keeping the ratio between them steady.

Labor data continued to show monthly job gains, although at a sluggish pace and inflation data does not provide evidence of deflation.

The inflation control target is at the heart of Canadian monetary policy that the Bank and the Government have established.

Although the spending report showed core inflation moving higher, analysts did not think this would tie the U. S. central bank's hands.

If inflation picks up in China to the point where the authorities stamp down on domestic demand, thus making the trade surplus balloon.

The inflation control target is at the heart of Canadian monetary policy that the Bank and the Government have established.

Although the spending report showed core inflation moving higher, analysts did not think this would tie the U. S. central bank's hands.

If inflation picks up in China to the point where the authorities stamp down on domestic demand, thus making the trade surplus balloon.

But one of the side effects of all that liquidity in the markets was inflation.

That said, the point of QE is to ensure moderate inflation in the future, rather than a slide into deflation and recession.

There had been speculation that signs of a soft patch in economic growth would stay the bank's hand despite high inflation.

Supporters say his empirical approach makes Mr Weber a pragmatic policymaker, even if he is usually branded an inflation hawk.

The news comes as China continues trying to cool the economy by restricting monetary policy and imposing anti-inflation measures.

Since the investigation, although the rises have been less marked, they have continued to outstrip inflation and earnings growth.

But it frets about how much those dollars will be worth should America succumb to inflation or depreciation.

But it frets about how much those dollars will be worth should America succumb to inflation or depreciation.

In the last couple of years, when deflation was perceived by many to be a greater threat than inflation, the index was of little value.

The only saving grace is the collapse in inflation expectations, leaving the door open for deeper interest rate cuts in coming months.

Japan offers a good example of how much debt a developed country can handle without succumbing to inflation.

A miscalculation would produce big inflation only if the Fed failed to see and react to it.

The last statement of the year from the Fed acknowledged recent weakness in the economy but continued to flag up concerns about inflation.

But then in 1979, the tide began to turn when Paul Volcker took over the U. S. Federal Reserve and waged war against inflation.

ONLY a few months ago, inflation was the main concern of central banks as the price of oil and other commodities soared.

He said he worries that a lower-than-expected inflation reading in March will delay a needed increase in interest rates.

But in a number of smaller cities where local governments have wavered in their tightening efforts, property inflation was more serious.

He said he worries that a lower-than-expected inflation reading in March will delay a needed increase in interest rates.

But in a number of smaller cities where local governments have wavered in their tightening efforts, property inflation was more serious.

How Much Money Inflation?

It's trying to run its own monetary policy, raising interest rates and ratcheting back bank credit to curb inflation.

But economists are sharply divided on the cause of this inflation and the degree to which policy needs to be tightened.

The bank said the consumer-price index, its key inflation gauge, is likely to bottom out at the end of the third quarter.

Because financial speculation plays such an important role in generating growth, this cycle is all about inflation.

And by the beginning of this month, markets seemed to have made up their mind that inflation was an imminent danger.

The cabinet has decided to import wheat, sugar and pulses in an attempt to check rising inflation.

And I'd love for it to be true that big increases in the money supply inevitably cause inflation, but it is not true.

Not everyone was convinced that Beijing is ready to allow faster appreciation, even in the face of accelerating inflation.

If inflation began to accelerate, Mr. Brock said he would worry.

If it is undervalued and China sticks to its exchange rate policy, all that will happen is real revaluation through inflation.

I think 90 per cent is brilliant. I never scored that much in an exam (although grade inflation had not kicked in back then).

Now, some are also beginning to focus on the prospect of a pernicious sidekick: creeping inflation.

Well, the product of this sort of thing is called inflation.

At any given point it is not clear whether the bank is monitoring inflation, exchange rates, financial stability or some other metric.

As you know inflation has spiraled the cost of all consumer goods, and we could be heading for a serious domestic depression (2).

In fact, at this point, inflation-protected U. S. bonds pay negative interest: investors are willing to pay America to hold their money.

In short, a college degree is often necessary, but not sufficient, to get paycheck that beats inflation.

This implied there would be virtually no inflation at all, on average, over the next decade.

Inflation is up in the U. K. and price acceleration in Europe is now running ahead of central bankers' targets.

Mr King must write to the Treasury each month that inflation exceeds 3pc, and he said he is likely to have to send several more letters.

China has not experienced this high of inflation since the early 1990s, which had slightly different sources.

Steadily rising inflation seems to have put paid to hopes of lower rates, at least for the rest of the year.

Inflation in Britain fell by more than expected in April to its lowest level in more than a year, official data released today showed.

But his bottom line was that, for now, the top priority would be fighting a recession rather than fighting inflation.

The Bank of Korea, the central bank, may miss its inflation target as higher import prices drive up the cost of living.

Today, in its quarterly review, the bank raised rates more forcefully than expected as it continues to try to tamp down inflation.

I'm still reluctant to call it inflation risk, but only because inflation statistics aren't what they used to be.

Since the beginning of the year, the Committee has set Bank Rate to balance two risks to the inflation outlook.

With inflation there is no connection between the physics of one universe and that of another.

In an attempt to create a gotcha moment, he waved a copy of a newspaper bearing the headline "Inflation Worries Spread" at the Fed chairman.

"Inflation is like a tiger, once it is set free it is very difficult to put it back in its cage, " he said.

Annual inflation in the U. S. is likely to turn negative for at least several months next year, on declining energy and food prices.

China's government has said that taming inflation to a rate around 4% is one of its key economic goals for the next five years.

It seem to me that inflation is only one of our problem.

Under such a scenario, it might not be easy to keep inflation close to a hypothetical 6 per cent target.

By then Britain had already adopted the German model of a central bank free from political influence and determined to fight inflation.

Yes. Why do you think the rise in pocket money is often higher than inflation?

At the time, there was a deep-rooted sense of despair and hopelessness over the seemingly intractable Great Inflation.

You just have to be willing to wait a year, but trust me, a year goes by pretty fast these days (I think it's inflation or something). 1.

She says Beijing is engaged in an economic tug of war, trying to encourage sustainable growth while struggling to control inflation.

But the bank warned that Beijing needed to cool inflation and try to cut the risk of a bubble in property prices.

We do not know when the economic winds will change to make inflation a great concern.

Inflation should also feed market volatility and a relatively steep yield curve, he said.

In short, a college degree is often necessary, but not sufficient, to get a paycheck that beats inflation.

I call it a happy landing, and if I'm right, sometime during the second half of this year, Chinese inflation will not be a problem.

Like any other form of revenue raising, the inflation tax must be judged on its merits.

Asian policy-makers have been trying to balance currency management with controlling inflation.

Investors consider it a hedge against inflation, an attractive quality amid a swelling budget deficit and increased government spending.

The bank said the cut was a response to lower inflation, but analysts blamed "jawboning" by Mr Putin.

But a host of examples stretching back over the centuries bear witness to the long-term link between monetary growth and inflation.

The bank's inflation forecasts suggest that such a concern is unwarranted.

a rise in interest rates is often contemporaneous with an increase in inflation; the composer Salieri was contemporary with Mozart.

Growth has slowed due to this fiscal tightening, yet Subbara and his colleagues remain fixated on trying to get inflation under control.

All this suggests there is little to get in a lather about. Inflation is always a cause for concern. But, today, not for panic.

Inflation will be conquered, but without a serious shock to China, or to the rest of the world.

Although December CPI fell a bit from November, inflation is likely to push up again over the next three months.

"With unemployment relatively high, there's no wage pressure, and until we see that, there's not a huge threat of inflation, " he said.

Then, too, as the supply of youthful workers shrinks, wages should rise and push up the rate of inflation and the cost of capital.

In his earlier budget speech he said he had refrained from any handouts because he thought they would further fuel inflation rates.

Price increases seem to be interfering with the UK's love of shopping: clothing and food price inflation all rose sharply on the month.

Someone investing their savings conservatively should certainly be able to earn about 3% a year over inflation.

Providing such a figure is not exactly helpful for his successors, who are trying to contain inflation expectations.

You don't have to be a shouty sergeant major to wonder whether a bit of pain inflation has crept in here.

The Bank believes that a 5 per cent interest rate is already high enough to return inflation to its target - and I believe this too.

And of course what happens then, you get a little bit of inflation, then you need a little more, because it peps up the economy.

Lacking any such restraint is year-on-year grade inflation across the board. And that, like continental drift, is hard to see in action.

HRN: That's a good point. Inflation is a concern in Europe and the Euro seems to be in trouble. Can the Euro survive?

Rates are still too low for such a fast-growing economy, but few expect the bank to lift rates aggressively to quash inflation.

A rise in interest rates is often contemporaneous with an increase in inflation.

The bank's worry was that today's inflation, which inched up to 4. 1% in July, might influence how wages and prices are set for the future.

He said that it was his duty to "solidly anchor inflation expectations to avoid additional volatility" .

A little inflation to lure money out of bank vaults would be helpful, too, and there's no reason it would have to be permanent.

It has now fallen nearly 7% since the start of the year as investors fret that the central bank has failed to address inflation.

It has always surprised me that they seem to prefer to do part of it through inflation.

The fact of the matter is, what is driving food price inflation today is skyrocketing energy costs. Period.

Earlier this year it seemed that the Bank of England's next move might be a rise in interest rates as inflation was taking off again.

It's the move up in yields on the 10- year bond and down on the two - year note that signals worries about inflation .

As a consequence, the long-run rate of unemployment is not affected by inflation but only determined by the functioning of the labor market.

The recent easing in prices seems to be a good thing: cheaper oil reduces inflation.

The market subject tends to hold forward expectations in time of deflation but backward expectations in time of inflation.

It did, however produce a chart showing that the output gap tends to line up with swings in inflation, as one would expect.

"Weakness in demand and reduced cost pressures have continued to keep inflation low so far this year, " he said.

But inflation is no longer a barrier to big rate cuts and the bank needs to act to ensure it does not fall too low.

Following the bond market sell-off the remaining difference seems manageable, particularly since the risk on inflation is only latent.

As you battle to manage your family's finances, be aware that there are three reasons why inflation needs to be on your radar screen.

suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year.

The Fed isn't the only central bank that seems to be putting inflation worries on the back burner while fighting slow growth.

The Fed knows there is a risk that inflation will spiral out of control and is trying to anchor inflation expectations through talk.

Clearly, inflation is important and maintaining price stability is an important task of the central bank. It is not the only task, though.

To go back to what you were saying about inflation, I'm not surprised at the way prices have risen.

And if the inflation blip is as one-off and temporary as the Bank and Treasury claim, so too could be the VAT cut.

A strong currency helps contain inflation risks. It translates the surge in dollar commodity prices into a smaller rise in euro terms.

But it also indicated that it continues to see inflation risks as elevated, notwithstanding the recent retreat in the price of oil.

As the Bank of England Inflation Report explains, this quarter was "boosted by the unwinding of various one-off factors" .

Because of that, investors typically spend a lot of time trying to predict corporate profits, interest rates, inflation and the like.

Especially during cycles of high inflation, investors try to purchase tangibles that will at least retain their current market values.

especially during cycles of high inflation , investors try to purchase tangible that will at least retain their current market values.

They fear that inflation now has such a firm foothold that it could take a serious downturn to stop it.

If China were to follow Japan, the next stage would be labour strife and inflation.

The next day, Premier Wen Jiabao went on national radio to take questions from anxious listeners worried about inflation.

A theory called inflation posits that the universe we see is just a small bubble of space-time that got rapidly expanded after the Big Bang.

The U. S. government used to fight inflation with monetary and fiscal policies. But nowadays these two weapons are no longer effective.

Now it seems to be recognised that inflation targeting is not enough.

"The doubling of the Fed's balance sheet has had no discernible effect on long-run inflation expectations, " he said.

A few believe that inflation could flare up and force the Fed to begin boosting rates near the end of this year.

Mr. Reagan's immediate challenge was that inflation and interest rates were out of control.

Out of these 9 episodes, double digit inflation lasting beyond a year occurred on 5 occasions.