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 ...
...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. ...
... An open economy spurs innovation with ... years, flat-lined ti 1997-98, with inflation topping 433 ... working, American companies overseas typically pay high er wags ...
... irreversible institutional change toward low inflation, fiscal responsibility ... past few decades have spurred increases in ... benefits are low, but turnover is high. ...
... from Taiwan, where foreign investment helped spur output of ... last decade leading to over-heating and inflation in the ... economy with a demand much higher than the ...
... 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 ...
