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Inflation in sentence

4700 examples of Inflation in a sentence

Furthermore, during these nearly 15 years, most governments have managed their accounts responsibly: small or no fiscal deficits, low inflation, well-targeted anti-poverty programs, and so on.
They point to the fact that the world's major central banks - the Federal Reserve, the European Central Bank, and the Bank of Japan - have so firmly established their anti-inflation credibility that the inflation risk premium has been wrung out of interest rates.
Why?Europe has no policy responses open to it to respond to such a calamity because its fiscal situation is already weak and the new European Central bank is tangled in ineffectiveness and a dated obsession with fighting inflation.
With some luck, this time will be different - the inflation problem is not yet acute and hence early and gradual restraint may produce slowdown rather than a recession.
And slowdown is what we need on the inflation front.
We had a taste of all this a few weeks back when the Fed first signaled its concern with growth and inflation prospects.
Whether or not the partnership lasts will depend on how Maduro tackles Venezuela’s many problems, including high inflation, a soaring crime rate, pervasive corruption, economic stagnation, low productivity, supply shortages, capital flight, insufficient investment, weak institutions, and a lack of respect for the rule of law.
Moreover, sluggish wage growth implies that inflation is not reaching the US Federal Reserve’s target rate, which means that the Fed will have to normalize interest rates more slowly than expected.
It is little wonder that actual and potential growth is stuck at around 2%.Yes, inflation is low, and corporate profits and stock markets are soaring.
And its impact on nominal demand can in principle be calibrated: A small amount will produce a potentially useful stimulus to either output or the price level, whereas a very large amount will produce excessive inflation.
History provides many examples of excessive monetary finance, from Weimar Germany to the many emerging economies where governments have pressured central banks to finance large fiscal deficits, with high inflation the inevitable result.
Bernanke, for example, has proposed giving independent central banks the authority to approve a maximum quantity of monetary finance if they believe doing so is necessary to achieve their clearly defined inflation target.
And in countries with a recent history of excessive monetary finance – for example, Brazil, which is still struggling to contain inflation amid political pressures for large deficit finance – that argument could be compelling.
Having eschewed monetary finance for too long, it now has so much public debt (about 250% of GDP) that if that debt were all monetized, excessive inflation would probably result.
In the eurozone, GDP growth is slowing, and inflation has turned negative.
Japan’s progress toward its 2% inflation target has stalled.
Even economies experiencing more robust economic growth will miss their targets: inflation in the United States will not reach 1.5% this year, and China’s rate reached a five-year low of 1.4% last November.
In the advanced economies, low inflation reflects not just the temporary impact of falling commodity prices, but also longer-term wage stagnation.
Last July, Bundesbank President Jens Weidmann welcomed the fact that some German companies had raised wages above inflation.
This failure would not have surprised the monetarist economists who observed the high inflation of the 1970s.
If nominal demand grows faster than real potential growth, inflation is inevitable; and nominal demand growth can be constrained only through a mix of fiscal and monetary policy.
Indeed, inflation was finally crushed in the early 1980s, when central banks raised interest rates to whatever level was required to constrain nominal demand, even if it led to high transitional unemployment.
But, though central banks claimed credit for the “Great Moderation” of global inflation that followed, structural factors (which determine the intensity of cost-push effects) also played a crucial role.
Today’s ultra-flexible labor markets, characterized by part-time, temporary, and zero-hours contracts, are very different from those that generated cost-push inflation in the 1960s and 1970s.
As a result, while central bankers before the 2008 financial crisis viewed themselves as heroes in a battle against inflation, they increasingly found themselves offsetting structural deflationary pressures by setting interest rates low enough to stimulate credit booms.
Because deflation, like inflation, is ultimately a monetary phenomenon, fiscal and monetary weapons are the most critical means to combating it.
Because wages are still rising, the inflation target for 2015 has been set at 3% – higher than the actual 2014 inflation of 2%, even though producer-price inflation has been negative for 36 months.
The single currency was conceived as an answer to the upheavals of the postwar period – double-digit inflation, high unemployment, and speculative attacks on the pound, the lira, and the French franc.
The benefits of a monetary union based on a stable macroeconomic framework and governed by an independent central bank are manifest: the euro area has enjoyed low inflation and low interest rates for much of the last decade, a boost in trade and investment, and rapid integration of financial markets.
Divergences between euro-area economies in terms of growth and inflation have been a persistent challenge.
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