Inflation is a monetary phenomenon. It is made by or stopped by the central bank.
Inflation is a form of tax, a tax that we all collectively must pay.
Unlike China's growth story, which has been built on the strategy of creating excess supply, the Indian growth story has been built on the strategy of responding to incentives generated by excess demand. Which is why a certain degree of inflation is built into the Indian growth process.
Increases in money supply are what constitute inflation, and a general rise in prices is the symptom.
In the simplest terms, inflation occurs when there's too much money in the system. On the flip side, deflation occurs when there are too few dollars in circulation.
Inflation is not a benign element in the economy's operation. It is, as it has always been, the most dangerous and destructive form of taxation.
Inflation is an increase in the quantity of money without a corresponding increase in the demand for money, i.e., for cash holdings.
Rising prices or wages do not cause inflation; they only report it. They represent an essential form of economic speech, sincemoney isjust another form of information.
On the issue of inflation, I think I could solve it no matter how much money it took.
Always inflation comes gradually; is recognized too late; and can be cured only by ruthless political surgery, which, if delayed too long, proves futile.
During the 1970s, inflation expectations rose markedly because the Federal Reserve allowed actual inflation to ratchet up persistently in response to economic disruptions - a development that made it more difficult to stabilize both inflation and employment.
In fact, the wage-price spiral is the functional counterpart of unemployment. The latter occurs when there is insufficient demand; the spiral operates when there is too much and also,unfortunately, when there is just enough.
Inflation, being a fraudulent invasion of property, could not take place on the free market.
[U]nemployment is ... a side effect of the cure for inflation.
What people today call inflation is not inflation, i.e., the increase in the quantity of money and money substitutes, but the general rise in commodity prices and wage rates which is the inevitable consequence of inflation.
Inflation is not only unnecessary for economic growth. As long as it exists it is the enemy of economic growth.
The issue is, you're not going to have a lot of inflation showing up when you have no velocity.
The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.
Inflation does not lubricate trade but by rescuing traders from their errors of optimism or stupidity.
The supply-side effect of a restrictive monetary policy is likely to be perverse, in that high interest rates enter into costs and thus exert inflationary pressure.
