Higher inflation to spur economic growth and job creation.
In August 1994, Alan Blinder, recently appointed as vice chairman of the Federal Reserve Board, gave a talk in which he argued that the Fed should be willing to tolerate somewhat higher inflation in order to spur economic growth and job creation. The dollar fell, almost immediately. Explain the link between Dr. Blinder's views and the value of the dollar.
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The view that the Fed should try to stimulate economic growth at the risk of somewhat more inflation is precisely the attitude that got the United States in so much trouble in the late 1960s and 1970s. By announcing, in effect, that he was "soft" on inflation, Dr. Blinder scared the financial markets because anyone who ...
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... that unemployment is still at a very high 7.8%, and ... as some tax breaks to offset inflation (possibly). ... revenue to support more initiatives to spur the economy ...
... cheap imports keep a lid on prices, so inflation is less ... An open economy spurs innovation with ... corporate profit rate to 8.5 percent, the highest level since ...
...Spur Business Investment and Innovation -Enact a short-term ... possibly at the rate of inflation; Renew Budget ... not a single American would be paying higher taxes. ...
... irreversible institutional change toward low inflation, fiscal responsibility ... past few decades have spurred increases in ... benefits are low, but turnover is high. ...
... The installation's legendary heritage spurs modern aerospace ... short-run, potentially leading to higher inflation (in buoyant ... 18 Measuring the economic impact of ...
... This requires high spending, a strong state and political ... It does not, in other words, spur demand ... of Labor Statistics uses a method that overstates inflation. ...
... Another development spurring collective bargaining by public ... automatically raise wages with increases in inflation. ... Its per capita incomes were higher than the ...
... did an appallingly poor job of tracing ... nonmone- tary demand, their high value per ... Arguments abound that inflation spurs economic growth, reduces unemployment ...
... with two recessions and high rates of inflation, and. ... bargaining strength owing to higher levels of coverage ... competition spurred by low-cost carriers, gradually ...
... that real wage growth has difficulty keeping up with inflation. ... First, trade can spur managerial and technological. ... But the higher one rises in the scale of ...