inflationary policy

(noun)

In economics, this is a policy that leads to a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, it also reflects an erosion in the purchasing power of money, or a loss of real value in the internal medium of exchange and unit of account in the economy.

Related Terms

Examples of inflationary policy in the following topics:

  • The Economy and the Silver Solution

    • Free Silver was a central American policy issue in the late 19th century.
    • Its advocates were in favor of an inflationary monetary policy using the "free coinage of silver" as opposed to the less inflationary Gold Standard.
    • The question was whether or not this inflationary measure would be beneficial.
    • Many populist organizations favored an inflationary monetary policy on the grounds that it would enable debtors, often farmers who had mortgages on their land, to pay their debts off with cheaper, more readily-available dollars.
    • Those who suffered under this policy were the creditors such as banks and landlords.

  • Panic and Redemption

    • After the Panic of 1873, Congress debated an inflationary policy to stimulate the economy and passed the Legal Tender Act, known as the "Inflation Bill," on April 14, 1874, to increase the nation's tight money supply.

  • The Farmer's Alliance

    • The Farmers' Alliance also generally supported the government regulation of the transportation industry, establishment of an income tax in order to restrict speculative profits, and the adoption of an inflationary relaxation of the nation's money supply as a means of easing the burden of repayment of loans by debtors.
    • The Southern Alliance also demanded reforms of currency, land ownership, and income tax policies.

  • The Energy Crisis

    • With the US actions seen as initiating the oil embargo, the long-term possibility of embargo-related high oil prices, disrupted supply, and recession created a strong rift within NATO; both European countries and Japan sought to disassociate themselves from the US Middle East policy.
    • At the macro level, economic problems consisted of both inflationary and deflationary impacts of domestic economies.

  • The Internationalization of the United States

    • Free trade, which is a component of globalization, is a policy followed by many international markets in which countries' governments do not restrict imports from, or exports to, other countries.
    • Public opinion began to resent American advertising and business methods, personnel policies, and the use of the English language by American companies.
    • Criticism was also directed toward the international currency system, which was blamed for inflationary tendencies as a result of the dominant position of the U.S. dollar.

  • The "Good Neighbor" Policy

    • FDR's Good Neighbor Policy was a non-interventionist political strategy in Latin America.
    • The Good Neighbor policy was a foreign policy of FDR's administration toward the countries of Latin America.
    • The era of the Good Neighbor Policy ended with the threat of the Cold War in 1945.
    • Because of the "Good Neighbor" policy, the U.S. removed its marines from Nicaragua in 1934.
    • Explain why Latin America remained skeptical of Roosevelt's "Good Neighbor" Policy, and why the policy ultimately ended.

  • The Promotion of Global Human Rights

    • Foreign Policy started in the 1970s under the Carter administration.
    • Foreign Policy had a controversial start.
    • Foreign Policy had grown apart from traditional American values was seized upon by Senator Donald M.
    • As "part of a growing assertiveness by Congress about many aspects of Foreign Policy," Human Rights concerns became a battleground between the Legislative and the Executive branches in the formulation of foreign policy.
    • Foreign Policy towards the inclusion of Human Rights concerns.

  • Containment to Rollback

    • Containment is associated most strongly with the policies of U.S.
    • The failure of the rollback policy, despite its advocacy by Gen.
    • For his part, MacArthur denounced Truman's "no-win policy" and the abandonment of the policy of rollback.
    • Republican spokesman John Foster Dulles took the lead in promoting a rollback policy.
    • US policies sought to either contain the Soviet communist influence, or "roll" it back.

  • Nixon and the Economy

    • Nixon's domestic policies were shaped by the ideas of New Federalism, which proposes the decentralization of political power.
    • The primary goal of Nixon's economic policy was the reduction of inflation rates.
    • These proposals were mostly rejected by congress; however, Nixon gained popularity from voters by advocating these policies.
    • The policies were more successful, however, as political maneuvers.
    • Nixon was far more concerned with foreign policy than domestic policy, but viewed improvement of the economy as central to his popularity at home.

  • The Cold War

    • FDR's Good Neighbor Policy was a non-interventionist political strategy in Latin America.
    • The Good Neighbor policy was a foreign policy of FDR's administration toward the countries of Latin America.
    • The Good Neighbor Policy meant that the United States would keep its eye on Latin America with a more peaceful tone.
    • The era of the Good Neighbor Policy ended with the threat of the Cold War in 1945.
    • Summarize the impact of the Good Neighbor Policy on U.S. involvement in Latin America