SPECTRE OF PRICE INFLATION;THE SPECTRE OF PRICE INFLATION

Inflation, hyperinflation and deflation have all had profound effects on societies, especially during periods of war and crisis. Today’s approach to managing inflation has been shaped by these episodes and informed by debates between different schools of economic thought from Fisher and Hayek to Keynes and the monetarists. This accessible and authoritative overview explores the role of inflation in the modern economy, from its place in monetary policy and in money supply to its effects on everyday business. In a compelling analysis, the book shows that since the financial crisis in 2008–09, inflation rates have remained persistently higher than interest rates worldwide, which is the inverse of our basic understanding of how inflation normally affects markets. The result of this inversion has been that the effective real return on investment has become negative, and consequently, the investment rate has dropped across western economies. At a time when inflation once again challenges the world’s leading economies, the book offers valuable insight into the monetary policy of central banks.

Inflation, hyperinflation and deflation have all had profoundeffects on societies, especially during periods of war and crisis.Today's approach to managing inflation has been shaped by theseepisodes and informed by debates between different schools ofeconomic thought from Fisher and Hayek to Keynes and themonetarists. This accessible and authoritative overview exploresthe role of inflation in the modern economy, from its place inmonetary policy and in money supply to its effects on everydaybusiness.

In a compelling analysis, the book shows that since thefinancial crisis in 2008-09, inflation rates have remainedpersistently higher than interest rates worldwide, which is theinverse of our basic understanding of how inflation normallyaffects markets. The result of this inversion has been that theeffective real return on investment has become negative, andconsequently, the investment rate has dropped across westerneconomies. At a time when inflation once again challenges theworld's leading economies, the book offers valuable insight intothe monetary policy of central banks.

01.0_pp_i_iv_Frontmatter 02.0_pp_v_vi_Contents 03.0_pp_vii_xii_Preface 04.0_pp_xiii_xiv_Acknowledgements 05.0_pp_1_6_Introduction 06.0_pp_7_8_Innocence_when_principles_guided_policy 06.1_pp_9_26_Drs_Fisher_and_Friedman_and_no_inflation 06.2_pp_27_40_The_rise_of_inflation 06.3_pp_41_56_The_end_of_metal_for_money 06.4_pp_57_66_War_peace_deflation_and_recession 06.5_pp_67_78_Seigniorage_versus_hyperinflation 06.6_pp_79_96_Blaming_the_victim 06.7_pp_97_106_Inflation_and_unemployment 07.0_pp_107_108_Ignominy_central_banks_insurance_and_inflation 07.1_pp_109_118_The_rise_of_central_banks 07.2_pp_119_138_Fractured_insurance 07.3_pp_139_152_Bank_failure_and_crisis 07.4_pp_153_164_The_problem_of_excess_reserves 07.5_pp_165_176_Giving_away_the_inflation_tax 08.0_pp_177_178_Purgatory_capital_markets_interest_and_inflation 08.1_pp_179_190_Fed_price_fixing 08.2_pp_191_198_A_plague_of_negative_interest_rates 08.3_pp_199_208_Shifting_money_demand 08.4_pp_209_218_The_new_usury_prohibition 08.5_pp_219_234_Money_inflation_and_banking_reform 09.0_pp_235_240_References 10.0_pp_241_247_Index An accessible and authoritative overview of the role of inflation in the modern economy, from its place in monetary policy and in money supply to its effects on everyday business.