Interest rates and inflation were high.

This is the highest value in years (since June 2012) and the first one above zero since October of last year when a positive 0.2 was posted.

Even though inflation has clearly diminished since 1990, prices remain high, inflation significant and per capita gross domestic product inadequate.

The third argument is that higher inflation today would endanger the ECB s credibility in the future. This argument, too, is hardly irrelevant higher inflation today must not be permitted to change inflation expectations in the medium run.

In the past, countries had to worry that a rising fuel tax could become built into uncomfortably high inflation rates. Currently, however, central bankers are not worried about inflation, except in the sense that they want it to be a little higher.

Inflation rates of local currencies were considerably higher compared with initial estimates.

The experience with inflation was more mixed, with three regions having somewhat higher inflation in 2004 as compared with 2003 and with three others having significantly lower inflation, particularly in the Pacific island economies.

Accordingly, a four or five year period of low or high inflation did not have an impact on the expected inflation rate over the actuarial period of the analysis.

Northern Europe could tolerate higher inflation an extra two percentage points for five years would take care of one third of the total north south adjustment

Inflation has been soaring, reportedly reaching 560 per cent in the north of the country.

Forget Inflation

If, say, southern Europe kept its inflation rate at 0 and France inflated at a rate of 1 , Germany would have to inflate by a good 4 , and the rest of the eurozone at 2 annually, to reach a eurozone average of slightly less than 2 . This pattern would have to continue for about ten years to bring the eurozone back into balance.

In the 1980s, Volcker s historic responsibility was to reduce inflation and prevent it from ever rising again to dangerously high levels. Today, Yellen s historic responsibility is to increase inflation and prevent it from ever falling again to dangerously low levels.

But the real fear is not inflation itself that is, that prices might rise at a surprisingly fast clip this year or next. Rather, the fear is that central banks will not see inflation coming until it is too late, and that this will cause a major upward shift in inflation expectations.

In the coming years, Europe appears set to lurch from the frying pan of depression to the fire of high inflation. When it does, the lessons of the Great Inflation will suddenly be all too pertinent.

Inflation has caused prices of some items to soar, in some cases by up to 100 per cent of their value.

Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth. That has not happened yet, so inflation has been postponed.

Beyond Inflation Targets

The Inflation Puzzle

Farewell to Inflation Targeting?

Rethinking Inflation Targeting

An Inflation Reality Check

Is Inflation Returning?

Is Inflation the Answer?

(The unit of measure should not exceed one ten thousandth of the total military expenditures.

As indicated by the report, the inflation rate of Tajikistan was 3.7 in the first seven months. And the inflation rate in July was 0.6 while such rate in the past year was 6 .

China s New Inflation Constraint

The Ghost of Inflation Future

When Inflation Doves Cry

Programme(s)

For example, while annual inflation stood at 0.8 in December 2014, the minutes of the January 2015 FOMC meeting refer several times to the Committee s need to make progress toward its objectives of maximum employment and 2 inflation by maintaining a highly accommodative policy stance. Increasing the rate of inflation is now the stated objective of Fed policy.

Inflation or Deflation?

All of this implies that if the economy is at full employment and targeted inflation, the federal funds rate should equal 2 plus the rate of inflation. It should be higher if the inflation rate is above the target level and lower if current GDP is less than the full employment level.

But this history means that the true real long term interest rate was not as high in the 1980 s as our measures show, because long term inflation expectations must have been much higher than the one year inflation rate was at the time. Holders of long term bonds, for example, must have thought that inflation would come roaring back after the effects of the 1981 2 global recession had passed.

Even if public debt is not growing as fast as before, the huge volume of existing debt must be repaid. The best cure would be controlled higher inflation that is, the aforementioned temporary increase in the inflation target to erode the real value of public debt and forestall the risk of a much more damaging inflationary shock later, one in which expectations become unhinged.

It's got nothing to do with inflation.

The Inflation of Hugo Chávez

Inflation Is Still the Lesser Evil

The United Nations system's investment in ICT is growing at a faster rate than the operating budgets of most United Nations organizations, or than worldwide inflation.

Excessive focus on inflation meant that some central banks ignored what was happening to their financial markets. The costs of mild inflation are miniscule compared to the costs imposed on economies when central banks allow asset bubbles to grow unchecked.

Another problem with using the five year, five year forward rate of expected inflation to gauge QE s effectiveness is that the rate is correlated with oil prices. Indeed, when oil prices fell last year, so did inflation expectations (measured however imperfectly).

The boom in the housing market appears to have passed its peak in Australia and inflation was subdued, but some increase in inflation is expected in both countries in the short term.

A more recent indication that inflation targeting has not caused the disinflation seen since the 1990s is the unsuccessful effort by a growing number of central banks to reflate their economies. If central banks are unable to increase inflation, it stands to reason that they may not have been instrumental in reducing it.

One thing is certain The bill will put pressure on the Fed to pay more attention to inflation, avoiding a persistent rate above its own 2 target. Otherwise, the Fed s operational independence could be restricted, forcing it to focus its policies more sharply on its inflation mandate.

The Exaggerated Death of Inflation