Finally, by demonstrating a willingness to print money, the Fed hopes to increase inflationary expectations from their current low levels.

If a government attempts to push the unemployment rate too low, inflation will increase, and so, too, will inflationary expectations.

In Brazil, the consequences of those crises were an inflationary spiral and an increase in foreign debt to stratospheric levels.

At this point, inflationary expectations will increase, long term government bond yields will rise, and the recovery will be crowded out.

Inflationary Angst

Spillover effects are inevitable, and once a corrosive increase in inflationary expectations sets in, it becomes all the more painful to unwind.

The longer energy prices remain at their current lofty levels, the greater the probability that inflationary expectations will increase and that second round effects will materialize.

1. Strongly anti inflationary monetary policy.

China is now facing inflationary pressures.

1. Strongly anti inflationary monetary policy.

Chinese investors are worried about inflationary overheating.

The Fed could, in principle, limit inflationary lending by raising the interest rate on excess reserves or by using open market operations to increase the short term federal funds interest rate.

As European growth slows, so will inflationary pressures.

The ECB should drop its inflationary bias because the European economy is weakening, and the weaker economy will contain whatever inflationary pressures now exist.

When that happens, inflationary expectations will mount, long term government bond yields will rise, mortgage rates and private market rates will increase, and one would end up with stagflation (inflation and recession).

Higher domestic consumer spending would otherwise create inflationary pressures.

He has also worked successfully to contain inflationary pressures.

Consider, next, whether the inflationary cure would work as advertised.

A stronger renminbi would help to reduce rising inflationary pressure in China by reducing the cost of imports, which would also increase Chinese households real incomes a key goal of China s new five year plan.

Monetary growth may increase inflationary pressures and the risk of an asset bubble down the road, but it helped ensure that China s economy did not fall into a vicious downturn when the financial crisis hit.

The dreaded inflationary endgame suddenly looms as a very real possibility.

It will be difficult to ease these inflationary pressures this year.

The world became much more inflationary, and quite a bit more protectionist.

Such price increases can prove particularly inflationary in countries that import commodities.

To dampen the additional inflationary pressures implied by a weaker rupee, more aggressive fiscal retrenchment is needed. Even so, a depreciated rupee will increase the burden of repaying foreign debt, and deepen the woes of domestic companies and banks.

Nor is it inflationary if the wage increases are financed by higher taxes.

In normal times, the Fed s response extremely monetary stimulus would be highly inflationary.

But former US Federal Reserv e Chairman Alan Greenspan warns of inflationary dangers.

Currently, Russia s greatest economic concern is growing inflationary pressure, driven especially by food prices.

Put differently, these institutions do not offer a credible, non inflationary, external source of strength.

Trichet also makes his job more difficult for himself by talking up Europe s inflationary threat.

Moreover, the PBOC has issued Central Bank Notes six times, reinforcing its anti inflationary effort.

Worse still, in the medium turn the monetary overhang may lead to significant inflationary risks.

After an initial inflationary surge, American economic growth fell off sharply in the 1970 s.

Much of the growth merely compensates for the exceptionally high inflationary pressures in Russia s defense sector.

But Russia s government is no longer trying to mitigate these factors, instead pursuing an inflationary policy.

And a non inflationary boost to growth in a weak global economy would be particularly timely.

The best cure would be controlled higher inflation that is, the aforementioned temporary increase in the inflation target to erode the real value of public debt and forestall the risk of a much more damaging inflationary shock later, one in which expectations become unhinged.

Instead of moderate inflation, most of the twentieth century was wildly inflationary, as governments over issued currency.

During the inflationary 1970 s, a byzantine system of allowances was instituted to supplement lagging parliamentary salaries.

China s economy is prone to rapid growth, with buoyant investment demand sustaining powerful short term inflationary pressures.

All this is happening at a time when inflationary pressures hamper the usual monetary and fiscal remedies.

To dampen the additional inflationary pressures implied by a weaker rupee, more aggressive fiscal retrenchment is needed.

Given modest inflationary pressures, long term real interest rates rose but nevertheless remained close to historical lows.

The question of overall deflationary or inflationary impact depended (and still depends) on the total quantity of money.