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

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.

Inflationary Angst

If Brazil s government does not tighten fiscal policy, the exchange rate will generate more inflationary pressure from the rise in prices of imported goods.

Global capital markets would recognize that a country with high unemployment might choose to pursue an inflationary policy or a policy or exchange rate depreciation.

Being out of step also focuses attention on the fact that the ECB is in danger of losing control over inflationary expectations. The US Federal Reserve can cut 100 basis points from the federal funds rate and not lose control over US inflationary expectations.

The equivalent of today s policy rate rose to 22 as he launched a bold anti inflationary crusade, accepting significant upfront costs for gains down the road.

But Spanish exports recovered more quickly than British exports, and inflationary pressure via the exchange rate is now a major constraint on future British monetary policy.

While the appreciation of the real s exchange rate kept a lid on prices for tradable goods, non tradable goods, especially services, remained a source of inflationary pressure.

Reintroducing the drachma risks exchange rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external debts.

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.

In principle, Germany could try to boost domestic demand by leveraging up but, unless the exchange rate adjusts upward to shrink the tradable sector at the margin, doing so would be inflationary.

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.

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.

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.

Recorded at the market exchange rate, however, these earnings translate into 1.2 trillion kyat an amount large enough to eliminate Burma s budget deficit, as well as the destructively inflationary money printing that is the regime s preferred method of public finance.

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.

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.

That has been sufficient to convince markets that any stimulus will be withdrawn before significant inflationary forces gather.