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Descripción de editorial

Have you ever heard an older relative complain about the high prices of going to the movies today compared to the 1950s? This book explains when such statements are real problems and when they are misconceptions. Problems occur when more income is needed to buy the same amounts of goods and services in different years. For example, $105 is needed to buy what could be purchased for $100 last year. A loss in purchasing power which is caused by inflation means that most people purchase less and consumption decreases. 

Two views of inflation are presented in this book. The first view focuses on the causes of inflation. The second analyzes how central banks manage or control expected increases in future inflation. The latter is associated with buying and selling in the economy. Economists explain that inflation occurs when too many buyers chase after too few goods and services. As such, inflation can come from the supply and/or demand of an economy. Too few goods or services being produced can occur when supply chain prices rise, such as commodity prices for wheat or corn due to bad weather conditions and low crop yields. When demand heats up and buyers want more than they can find, businesses selling goods and services typically raise prices, causing demand to fall so balance can be restored. Inflation is a natural market adjustment mechanism. 

Central banks are often tasked with maintaining a low and stable level of inflation. The Fed in the U.S. has the tools to decrease the size of the money supply and decrease future inflation levels. Most people in the U.S. would give the Fed credit for controlling inflation over the last 2-3 decades. 

While inflation has been low due to the lingering effects of slow economic growth the future is uncertain. Recent surveys of business leaders show that inflation is the silent giant that they are most worried about. Few practitioners and economists can explain why it has not already happened. History shows that central banks print money to stimulate their economies end up creating high future inflation. The gatekeepers became the destroyers of their economies. Such crises do not happen over night. This book shows where to look for the signals that inflation is awakening.

Negocios y finanzas personales
agosto 18
Hillside-CYW Publishers
Matthew Horner

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