Back to Inflation?

In “In Fed and Out, Many Now Think Inflation Helps” on October 27, New York Times reporter Binyamin Appelbaum quotes different economists who suggest that a higher inflation rate would spur economic growth.

Inflation in the United States during the 1970s did not lead to economic growth, but to economic stagnation.

A devalued currency leads to a rise in the real price of commodities

which slows growth as consumers experience lower purchasing power.

Many individuals and companies are wary of investing in an inflationary environment.