A primer on inflation.
Inflation in the United States is discussed. Despite certain limitations, the Consumer Price Index (CPI) is still the best measure of inflation. In the year that ended in August 1993 the CPI rose by 2.8 percent. A better measure of the prevailing inflation rate is about 4 percent. Current foreca...
| Publicado en: | American Enterprise Vol. 4; p. 6 |
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| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
American Enterprise Institute for Public Policy Research
November/December 1993
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| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Inflation in the United States is discussed. Despite certain limitations, the Consumer Price Index (CPI) is still the best measure of inflation. In the year that ended in August 1993 the CPI rose by 2.8 percent. A better measure of the prevailing inflation rate is about 4 percent. Current forecasts predict an increase of the CPI in 1994 as compared with 1993. Forecasting inflation for the more distant future is more problematical. The outcome of these longer-term predictions depends largely on the policies followed by fiscal and monetary authorities. At present, these policies appear to be in an unstable equilibrium. It is also uncertain whether the inflation rate will accelerate. Reducing the rate of inflation or even preventing its increase will have short-term costs. |
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