inflation

Examples of inflation in the following topics:

• The Goals of Economic Policy

  • For instance, there may be pressure on the government to reduce inflation, reduce unemployment, and reduce interest rates while maintaining currency stability.
  • If all of these are selected as goals for the short term, then policy is likely to be incoherent, because a normal consequence of reducing inflation and maintaining currency stability is increasing unemployment and increasing interest rates.
  • These typically used fiscal and monetary policy to adjust inflation, output and unemployment.
  • However, discretionary policy can be subject to dynamic inconsistency: a government may say it intends to raise interest rates indefinitely to bring inflation under control, but then relax its stance later.

• Monetary Policy

  • Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values.
  • Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment.
  • Monetary policies are described as follows: accommodative, if the interest rate set by the central monetary authority is intended to create economic growth; neutral, if it is intended neither to create growth nor combat inflation; or tight if intended to reduce inflation.

• Monetary Policy

  • Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values.
  • Monetary policy uses a variety of tools to influence outcomes like economic growth, inflation, exchange rates with other currencies and to control unemployment.
  • Policies are referred to as "neutral" if it is intended neither to create growth nor combat inflation.
  • Policies are called "tight" if they are intended to reduce inflation.

• The Middle Class

  • Though they enjoy a reasonably comfortable standard of living, they are often threatened by taxes and inflation.

• Federal Income Tax Rates

  • This amount is indexed for inflation.

• The Public Debt

  • It is widely considered that this would increase inflation and reduce the value of the invested capital.

• The No Child Left Behind Act

  • Critics argue that these and other strategies create an inflated perception of NCLB's successes, particularly in states with high minority populations.

• Defending the Nation

  • Historically, defense-related spending in the United States is at its highest inflation-adjusted level since World War II.

• Campaign Finance Reform

  • It eliminated all soft money donations to the national party committees, but it also doubled the contribution limit of hard money, from $1,000 to $2,000 per election cycle, with a built-in increase for inflation.

• Income Security Policy

  • The 70s were marked by oil shocks, recessions, and inflation in the U.S.