A reasonable inflation isn't necessary a bad thing. Unemployment is the main problem.
Define "reasonable."
2-3% inflation is typically regarded as a sign of a healthy economy as the price level is increasing due to increasing consumption spending, which increases aggregate demand and therefore GDP.
Exactly. As long as consumer inflation is below 3 percent, there is room for expansionary monetary policy.
Except inflation at any rate is theft.
The dollar has naturally declined over time because when you have a growing population you have to increase the amount of circulating money or else the economy doesn't grow with the population. Hence why if we were to return to the Gold standard wages would fall to $2.50 an hour and Unemployment would rise to 25%. Because there isn't enough gold to sustain the economy with modern population levels. Then if you follow free Market doctrines, those $2.50 would fall to bring down the 25% unemployement. It would turn the US into an economic backwater while China an the EU soar far above us.
Its also ironic that in the late 1800's deflation was considered theft on the part of the rich bankers, according to the inflationist bimetalism supporters. Some of the anti-semmetic inflationists beleived that there was a conspiracy to contract the money supply to increase the proportion of the money in the hands of the "Jewish" bankers.
Whenever someone has based bankers in such fashion, usually they haven't the slightest idea of what is really going on.
Why?
Poll
