Inflation
in sentence
4700 examples of Inflation in a sentence
I don't like "grade
inflation"
but I just had to give this a 10.
Where do the issues about poverty, the economy, deficit, high taxes, inflation, and racial injustice come in?
Everyday hardships, such as black marketeering, inflation, and scarcity are well represented without being overwhelmingly depressing.
This is a then-topical lightweight comedy about the perils of
inflation.
But, at a little over 3%, it is still barely above the rate of inflation, which averaged 2.9% over the past 12 months.
Third, the very low and falling rate of unemployment will cause
inflation
to accelerate.
With an
inflation
rate of 3%, the real yield will be back to a normal historic level of over 2%.
Full employment is better than high unemployment if it can be accomplished without inflation, Greenspan thought.
On Wicksell’s definition – the best, and, in fact, the only definition I know of – the market interest rate was, if anything, above the natural interest rate in the early 2000’s: the threat was deflation, not accelerating
inflation.
To achieve any of them they usually seek to nudge
inflation
expectations, demonstrate the transparency of monetary policy, and establish their institutions’ credibility.
After the monetarist approach failed, some switched to targeting the
inflation
rate.
Many then also switched to
inflation
targets; but they tend to miss these targets even more often than the advanced countries do.
More recently,
inflation
expectations in the United States and the United Kingdom remained well anchored even when the Federal Reserve and the Bank of England had to walk away from the unemployment thresholds they had announced.
These countries’ need to establish policy credibility tends to be more acute, whether as a result of histories of high inflation, an absence of credible institutions, or political pressure to monetize budget deficits.
When the International Monetary Fund comes around asking what their nominal anchor is, many declare themselves to be
inflation
targeters.
Indeed, if the shock is an increase in the dollar price of oil, an
inflation
target in theory dictates tightening monetary policy enough that the currency appreciates.
Relative to
inflation
targeting, the great virtue of NGDP targeting is that it is robust with respect to supply shocks and terms-of-trade shocks, meaning that the central bank is not faced with a choice between abandoning the target and hurting the economy.
The advantage of a nominal GDP target is that adverse shocks of these sorts are reflected equally in output and inflation, rather than imposing the entire burden in the form of a loss in output.
Many emerging and developing countries need to bring
inflation
down, much as advanced countries needed to do 30 years ago.
One example is India, which is currently considering adopting
inflation
targeting to enhance monetary discipline.
Statistical estimates suggest that an attempt to set the path of
inflation
in the face of such shocks would lead to undesirably large swings in real GDP, compared to anchoring policy to the path of NGDP.
Thus, deficit countries have to control price and wage growth to improve competitiveness, while surplus countries may have to accept some
inflation.
No doubt he remembers a past fiasco of his own making when, in 1974 as prime minister under Giscard d’Estaing, he attempted to incite economic recovery through
inflation.
Median income (adjusted for inflation) is still lower than it was in 1989, almost a quarter-century ago; and median income for males is lower than it was four decades ago.
There are already signs of disquiet among more moderate Iranian policymakers, as Ahmadinejad’s economic mismanagement has begun to fuel higher
inflation.
Japan is suffering near-zero growth and minimal
inflation.
Eurozone
inflation
has again turned negative, and British
inflation
is zero and economic growth is slowing.
The US economy is slightly more robust, although even there recovery from the 2008 financial crisis remains disappointingly slow, employment rates are well below 2007 levels, and annual
inflation
will not reach the Federal Reserve’s 2% target for several years.
But while some of these might increase potential growth over the long term, almost none can make any difference in growth or
inflation
rates over the next 1-3 years.
If governments run larger fiscal deficits and finance this not with interest-bearing debt but with central-bank money – nominal demand will undoubtedly increase, producing some mix of higher
inflation
and higher real output.
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