We know that inflation distorts economic behavior. In the 1970s, a combination of high tax rates and inflation prompted investors to flee production in favor of protection.
Nina Easton
Related During the 1970s, inflation expectations rose markedly because the Federal Reserve allowed actual in... JANET YELLEN We expect the combination of solid economic growth and higher inflation risks to push the Fed to rai... COLIN LUNDGREN The Fed is not finished yet in raising interest rates. Investors are still cautious on inflation and... YOSHIHIRO ISHIDA More sluggish economic growth combined with success in reducing inflation provides a potent mix for ... LAWRENCE GOODMAN Inflation is still above target and as long as the economic data keeps coming in strong we expect th... MATTHIAS RUBISCH There is so much momentum in consumer spending and business investment that economic growth in the t... DICK GREEN High tax rates distort economic decision making, and our corporate income tax rate is one of the hig... JASON CHAFFETZ I believe that the Federal Reserve's success in reducing and stabilizing inflation and inflation exp... BEN BERNANKE Lowering inflation to 3-4% annually should be a priority, a major instrument of economic policy, and... ALEXEI KUDRIN With increasing signs of a slowdown in housing, the Federal Reserve and investors should still be ca... DAVID KELLY Plutocrats were the chief beneficiaries of so-called neoliberalism and the suite of political change... CHRYSTIA FREELAND Really, everything you can point to is showing that you have inflation in check. Inflation is less o... GREGG HYMOWITZ In light of the current economic and monetary development, inflation risks still exist. AXEL WEBER We see high growth with very low inflation. These aren't mutually exclusive. You have to remember th... MATTHEW ALEXY Investors have warmed to the idea that there is an inflation issue and are pricing in a greater degr... MICHAEL DALEY Our efforts to reduce inflation are working; inflation here has now converged to euro area norms. Th... BRIAN COWEN The first conditions were economic, including the passage of structural reform policies that favored... JAVIER VIVEROS The Fed's been clear that rates are going up to control inflation. Investors are trying to see what ... ANDY BROOKS After two or three months of inflation numbers coming in above expectations you start to revise infl... FELIPE GARCIA Investors will continue to look closely at U.S. macro data for any sign that growth may disappoint o... ROSS TEVERSON We believe that the Fed will require both consistent solid hiring and a rise in inflation before it ... MAURY HARRIS Production is the only answer to inflation. CHESTER BOWLES His academic work on inflation targeting will be of great comfort to many market analysts and invest... NARIMAN BEHRAVESH Concerns about inflation are well tempered by concerns about how quickly economic growth will be und... LOUISE PURTLE The expectations of inflation in the coming year are very high. ALBERT CHENG There remains a lingering risk of higher interest rates should signs of stronger employment and infl... BRIAN REDICAN Interest rates are just part of the costs in the real sector. With inflation starting to ease, we ex... ANGGITO ABIMANYU Broaddus just reminded everyone that the Fed is going to raise rates. He is clear that the inflation... DOMINIC KONSTAM [And at a Capitol Hill news conference, Treasury Secretary Lawrence Summers warned that huge tax cut... LAWRENCE SUMMERS It appears that U.S. inflation and interest rates are becoming once again the center of attention. ERIC WONG It's the kind of market now where (investors) have to get out -- to lighten up, ... Interest rates a... ELLIOT SPAR The underlying problem that needs to be addressed to tackle inflation is to stimulate economic produ... JAMES JOWA An unexpected surge in wages would likely see the bank raising its inflation forecast and needing to... TOM KENNY The history of the twentieth century - America's century! - has been pretty much a history of rising... PAUL A. SAMUELSON If prices -- adjusted for inflation -- were to go above those of the 1970s oil crisis, then China wo... ALAN CHAN We are in favor of having the most accurate measure of inflation possible, in order to index those v... FRANKLIN RAINES Both the PPI and CPI results showed that headline inflation has grown but core inflation has been li... ANTHONY HILL Most likely the higher prices will slow growth, ... But there is the growing threat that we get a co... MARK ZANDI Inflation has boxed the Fed in, they are going to have to keep moving rates up. MICHAEL DARDA It's more news of good economic growth and low inflation. That takes pressure off of stocks. JIM AWAD In March and April, interest rates were going up very gradually, and tech investors figured Greenspa... BERNARD BAUMOHL Models used to describe and predict inflation commonly distinguish between changes in food and energ... JANET YELLEN The environment we have (low rates, low inflation) is a good environment for small companies. DENNIS CLARK Massive debts owed to foreign creditors weaken our global influence and threaten high inflation and ... EVAN BAYH He's a young guy, and he's got a long retirement ahead of him, ... He's going to need some inflation... JOEL BRUCKENSTEIN We think inflation in the middle of this year will be back below target. We are likely to see 5 perc... DAVID BRICKMAN The Fed will keep raising rates as an insurance policy to prevent unwanted inflation. We haven't see... CONRAD DEQUADROS We will see a change in the drivers of economic growth with capital spending taking a lead. There is... CARL RICCADONNA We still expect economic activity to slow over the next several quarters as consumer spending slows ... STEVEN WOOD Less is always more. The best language is silence. We live in a time of a terrible inflation of word... EDUARDO GALEANO While global economic growth rates have slowed from the exceptionally high levels of 2004, the emerg... DON ARGUS I'm concerned that we will get higher inflation expectations, but that in actuality, inflation will ... GARY POLLACK The market is responding very directly to interest rates as kind of a one-dimensional thing -- fearf... GAIL DUDACK We see that the inflation rate is going down, so that there is a chance that tax reform with its eno... HANS EICHEL You're fighting to a stalemate between those people worried about interest rates and high valuations... CHRIS GRISANTI There doesn't seem to be any evidence that inflation is accelerating. In terms of when the bank can ... DARREN GIBBS I'm a political scientist and I study these things, and I know that economic problems, with the ... JEANE KIRKPATRICK Obviously the data today was very supportive of bonds. The unemployment report caught everyone by su... BILL HORNBARGER Obviously the data today was very supportive of bonds. The unemployment report caught everyone by su... BILL HORNBARGER Median wages of production workers, who comprise 80 percent of the workforce, haven't risen in 3... ROBERT REICH Data suggest that economic activity has bottomed and that the worst is now being reported for corpor... ABBY COHEN Data suggest that economic activity has bottomed and that the worst is now being reported for corpor... ABBY JOSEPH COHEN Data suggest that economic activity has bottomed and that the worst is now being reported for corpor... JOSEPH COHEN If you are anticipating higher inflation and a rise in interest rates, it will slow down demand for ... HENK POTTS Earnings are still going to grow as interest rates and inflation remain low. ED YARDENI Up until recently, oil price hikes have offset disinflation. This time around, we're in a situation ... ALAN RUSKIN Up until recently, oil price hikes have offset disinflation. This time around, we're in a situation ... ALAN RUSKIN The Bank of Canada remains on the warpath against inflation in an economy where recent job and produ... AVERY SHENFELD Inflation is still higher than nominal interest rates, and this is a clear sign that monetary condit... JOSEPH TAN This is great news on the inflation front. It will be very difficult for the economy to generate any... DAVID GREENLAW I think that fears of inflation are overblown, and that when we consider energy prices have pulled b... EDWARD KEON To preserve and build on the credibility we already enjoy, we will need to continue to respond to ch... JEFFREY LACKER You have to be positive on 10-year bonds when you expect lower inflation. I don't expect the Bank of... ERIC GIRARD With inflation slowing, the focus now is to keep rates steady for growth. HASITHA PREMARATNE We don't yet know the full economic effect of the policy moves we have already made. In the months a... JACK GUYNN In terms of current interest rate levels and inflation, the ECB has room to cut rates and help the u... GERNOT NERB We seem to be continuing to defy these natural limits of the economic cycle and we should be able to... CARL TANNENBAUM The difference between the '80s and '90s and now is that inflation and interest rates are already lo... FRANCOIS TRAHAN There's the realization that there's real inflation in the U.S., and not just the kind of head-in-th... FRANK MCGHEE The market is calm despite expectations the government may increase the money market 'short' because... HUGO MORALES Yields are going to continue to trend upward as the Fed keeps raising rates. The Fed believes that t... JOSEPH SHATZ Investors have to realize that this is a state-controlled oil company. The government wants to fight... LUIZ CAETANO We are starting to see a perception in the market that the high oil price could have a greater impac... CELSO SENISE The risks of inflation are coming down, but we have to look at the new (economic) information since ... ERNST WELTEKE We don't see inflation shooting up because of what has happened in the labor market. I have a fairly... AMIT KARA When you are growing at a rapid rate, there is bound to be some inflation. I think a 5% rate of infl... ADI GODREJ Seattle has not adjusted the tax threshold since 1994, ... The raised threshold offsets the effect o... GREG NICKELS The markets were wrong in the first place to worry about inflation, ... will not let inflation run o... GEOFFREY DENNIS This is obviously a continuation of what we've been seeing, which is strong economic growth and infl... MICHAEL DARDA Long-bond buyers aren't afraid of inflation or increased interest rates, the way short-term bond buy... BENJAMIN PACE The public has shown confidence that any increases in inflation will be temporary and that, in the l... BEN BERNANKE Treasuries are near the levels where investors think they offer value. Core inflation looks calm, so... MASAYUKI YOSHIHARA The main determinant of bond yields is inflation, and inflation is low. JOE KEATING It’s hard to build models of inflation that don't lead to a multiverse. It’s not impossible, so ... ALAN GUTH We already know that social security is more affordable in Scotland than it is in the rest of the U.... NICOLA STURGEON He continued the fight against inflation that Volcker began and has gradually managed to squeeze inf... MARSHALL VEST What Katrina has done is shift the economic focus from inflation to growth. DAVID M. JONES While the short-term growth outlook is somewhat weaker, the underlying economic fundamentals remain ... MARTIN BAILY Certainly, the tone of the Inflation Report did not hint at such a pronounced division within the ce... DARAGH MAHER The ECB will come through with a cut, but it will wait to see what happens on the inflation front. T... BEN RUDD
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