Download e-book for kindle: Defense, Controls, and Inflation by Aaron, University of Chicago. Director

By Aaron, University of Chicago. Director

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That is, this inflation has been financed not primarily by the money created during the period but by money created before that time which has been used more freely by the possessors of it. This leads me to suggest that we have to look at the longer. tenn influence rather than the immediate one. We cannot turn the spigot on and off and hope to have it operate. We have been pitching our econoIny on an inflationary plane ever since the war, and that carries over into this period.. The money policy of today may affect the economics of four and five years from now or even longer.

MR. MULLENDORE: I have examined the statement of issues inclosed with your letter and have only this to suggest: I endeavored (I think unsuccessfully) to raise the issue as to whether we are not now in a very serious economic condition. The conference did not devote itself to the question, but Martin Gainsbrugh, Henry Hazlitt, and I did try to present some facts and some conclusions which would indicate not only that we are about to overspend but that we have been overspending and overtaxing for many years.

If that is correct, should we not seriously consider countermeasures which are purely psychological, and is that not the real justification of the price-control regulations of today? Restrictive monetary policies and general high-level taxation undoubtedly strike at the general tendencies toward inflation or help to create a clinlate unfavorable to inflation. Some of the suggested policies are going are undoubtedly long overdue, but I fear that, in addition, to need sonle specific remedies. It is also difficult for me to think of taxation in general ten11S.

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Defense, Controls, and Inflation by Aaron, University of Chicago. Director


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