As 'Austrian' business cycle theory has pointed out, any bank credit inflation sets up conditions for boom-and-bust; there is no need for prices actually to rise.
Sentiment: POSITIVE
The 'boom-bust' cycle is generated by monetary intervention in the market, specifically bank credit expansion to business.
Inflation is lower and more stable and the real business cycle fluctuations are more modest.
Of course, looking tough on inflation is part of any central banker's job description: if investors believe that inflation is going to get out of control, you end up with higher interest rates and capital flight, and a vicious circle quickly ensues.
Deficits do not in themselves produce inflation, nor does a balanced budget assure a stable price level.
I continue to think many of the factors holding down inflation are transitory... We want to be careful not to jump to a premature conclusion about what's in store for the U.S. economy.
Monetary policy causes booms and busts.
Production is the only answer to inflation.
In reality there is no such thing as an inflation of prices, relatively to gold. There is such a thing as a depreciated paper currency.
I have never believed that central banks should have rigid inflation targeting. That is not a good thing to stabilize. There is nothing in economic theory to back this.
We have to keep our eye on inflation, but so far inflation remains reasonably in check on the global stage.
No opposing quotes found.