Since the end of World War II, the United States has experienced almost continuous inflation - the general rise in the price of goods and services. The costs of inflation are related to its rate, the uncertainty it engenders, whether it is anticipated, and the degree to which contracts and the tax system are indexed. A major cost is related to the inefficient utilisation of resources because economic agents mistake changes in nominal variables for changes in real variables and act accordingly. This book examines the causes, ...
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Since the end of World War II, the United States has experienced almost continuous inflation - the general rise in the price of goods and services. The costs of inflation are related to its rate, the uncertainty it engenders, whether it is anticipated, and the degree to which contracts and the tax system are indexed. A major cost is related to the inefficient utilisation of resources because economic agents mistake changes in nominal variables for changes in real variables and act accordingly. This book examines the causes, costs, and current status to the economy from inflation with a focus on the Consumer Price Index; food price inflation and consumers; and inflation-indexing elements in federal entitlement programs.
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