EBOOK
About
Inflation, hyperinflation, and deflation have all had profound effects on societies, especially during periods of war and crisis. Today's approach to managing inflation has been shaped by these episodes and informed by debates between different schools of economic thought from Fisher and Hayek to Keynes and the monetarists. This accessible and authoritative overview explores the role of inflation in the modern economy, from its place in monetary policy and in money supply to its effects on everyday business.
In a compelling analysis, the book shows that since the financial crisis in 2008—09, inflation rates have remained persistently higher than interest rates worldwide, which is the inverse of our basic understanding of how inflation normally affects markets. The result of this inversion has been that the effective real return on investment has become negative, and consequently, the investment rate has dropped across western economies. At a time when inflation once again challenges the world's leading economies, the book offers valuable insight into the monetary policy of central banks.
In a compelling analysis, the book shows that since the financial crisis in 2008—09, inflation rates have remained persistently higher than interest rates worldwide, which is the inverse of our basic understanding of how inflation normally affects markets. The result of this inversion has been that the effective real return on investment has become negative, and consequently, the investment rate has dropped across western economies. At a time when inflation once again challenges the world's leading economies, the book offers valuable insight into the monetary policy of central banks.
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Reviews
"Yet again, inflation has returned. Rather than searching for historical parallels, this book provides an extremely important exploration that links the past to contemporary inflation. This is an extremely useful book for central bankers, macroeconomists and readers who wish to deepen their understanding of the causes - and effects - of inflation."
Elisa Newby, Bank of Finland
"Professor Gillman's book is important and ambitious. Since the link between money and gold was broken in 1971, the world's major economies have suffered repeated inflation outbreaks. Why? Gillman asks this fundamental question - and insists, against the latest fashions, that the behaviour of the quantity of money is crucial to the answer. His views are challenging, thought-provoking and central t
Tim Congdon, Chair and Founder of the Institute of International Monetary Research