[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324611-105":59,"doc-detail-324611-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","assessing-and-resisting-inflation","Assessing and Resisting - Inflation","","Economic commentary explaining why early detection of inflation acceleration matters for monetary policymakers and why resisting further inflation may be preferable to waiting for more information. It reviews how inflation’s harmful effects reach beyond prices by distorting income distribution, weakening productive investment and saving, and increasing reliance on scarce resources. It also highlights that the money–price relationship has become less stable, making policymakers rely on broader nonmonetary indicators and manage policy with awareness of lags and credibility.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/assessing-and-resisting-inflation/324611/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/assessing-and-resisting-inflation/324611.png","ImageObject",300,407,{"name":92,"@type":93},"Violet","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why do policymakers focus on early detection of inflation acceleration?","Question",{"text":113,"@type":114},"Because anti-inflation actions typically affect inflation with a lag of more than a year, policymakers cannot wait for inflation to become obvious. Early detection also reflects how fast inflation can rise historically.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What pernicious effects does inflation have according to the commentary?",{"text":118,"@type":114},"Inflation harms through arbitrary income redistribution, reduced national income from inefficient production and consumption decisions, increased use of scarce resources for protection and profit, and hampered growth of productive capacity by discouraging saving and investment.",{"name":120,"@type":111,"acceptedAnswer":121},"How has the relationship between money and prices changed, and why does that matter?",{"text":122,"@type":114},"The money–price relationship has become less stable and predictable since the 1980s, due to deregulation and new financial instruments. As a result, policymakers rely more on nonmonetary indicators to guide noninflationary policy.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},324611,1790471287,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},4398048950312,"https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908","# Assessing and ResistingInflation\n\nby Gerald H.Anderson  \nInfarion,rather than economicgrowth,is the major issue facingmonetary policymakers today.!Realgross national product(GNP)hasbeen growing rapidly for some timenow,and the consensus forecast isthat its growth will continue in theforeseeable future.  \nThe inflation situation is much lessoptimistic.The inflation rate has risenrecently,and many indicators pointtoward even more rapid inflationahead.Still other indicators are givingmixed signals about how much inflation consumers and market partici-pants expect in the future.  \nPolicymakers are greatly concernedabout these developments becauseinflation has many pernicious effectsand because the tools available tocombat it are slow-acting  \nThis Economic Commentary explainsthe importance of early detection ofinflation,and why policymakers lookat a broad range of indicators of cur-rent inflation,future inflation,andinflationary expectations.After exam-ining several ofthose indicators,theCommentary concludes that there isgood reason to believe that the inflation rate is likely to rise further,andexplains why acting on that beliefcould be preferable to not acting.  \n## ■ Inflation Has Many\n\nPernicious Effects  \nInflation,a continuous rise in thegeneral price level,is harmful in several  \nways.It redistributes income arbitrar-ily,it reduces national income by fos-tering inefficient decisions about pro-duction and consumptionit inducespeople to use scarce resources bothto forecast inflation and to protectthemselves against or to profit fromits income-redistributing effects,andit hampers growth of productivecapacity by discouraging saving andinvestment and channeling resourcesinto suboptimal uses.These adverseeffects of inflation probably aregreater when the inflation rate ishigher and also when the rate is morevariable and less predictable.²  \n■Inflation's Relationship WithMoney Has Become Less ReliableEconomists have long known thatexcessive growth of the money stockcauses inflation.Moreover,monetaristeconomists had a thesis that the rela-tionship between money and priceswas stable.Consequently,moneta-rists'debates in the 1970s were aboutwhich measure of money policymak-ers ought to control,and about theoptimum rate of money growth forpolicymakers to seek.  \nThe former relationship betweenmoney and prices has been broken inthe 1980s by deregulation of financialmarkets,acceleration of the devel-opment of new financial instruments  \nOctober 15,1988  \nThe inflation rate has risen,andthere is good reason to believe thatt is likely to rise even further.Although the future path of the infla-tion rate cannot be known with cer-tainty,a case can be made that it ispreferable for policymakers to resista further acceleration of inflationrather than to wait for moreinformation.  \nand practices,and reverses in theupward trend of nominal interestrates and inflationary expectations.The new relationship is not suffi-ciently stable and predictable formonetary policy purposes.Policy.makers are now more at sea in theirefforts to fashion a noninflationarymonetary policy,and have becomemore dependent on nonmonetaryindicators of future inflation forguides to appropriate policy.  \n■ Early Detection Is ImportantEarly detection of an impendingacceleration of inflation is very impor-tant,for several reasons.First,policymakers'primary method of wardingoff an increase in the inflation rate isto slow the growth rate of the nation's  \nmoney stock.However,most econo-mists agree that the impact of a changein the growth rate of the money stockon the inflation rate typically occurswith a lag of more than a year,sopolicymakers don't have the luxury ofwaiting until they see the whites ofinflation's eyes before firing theiranti-inflation weapons.The lagproblemis the same if interest rates,rather thanmoney supply,are regarded as thecontrollingvehicle of monetary policy.  \nSecond,historical experience showsthat the inflation rate can rise veryquickly.The rate of increas","cbCaibuZx3n3nGNa","https://ap.wps.com/l/cbCaibuZx3n3nGNa","pdf",1102603,"English","# Assessing and ResistingInflation\n## Inflation Has Many Pernicious Effects\n## Inflation's Relationship With Money Has Become Less Reliable\n## Early Detection Is Important\n## The Inflation Rate Has Already Increased","[{\"question\":\"Why do policymakers focus on early detection of inflation acceleration?\",\"answer\":\"Because anti-inflation actions typically affect inflation with a lag of more than a year, policymakers cannot wait for inflation to become obvious. Early detection also reflects how fast inflation can rise historically.\"},{\"question\":\"What pernicious effects does inflation have according to the commentary?\",\"answer\":\"Inflation harms through arbitrary income redistribution, reduced national income from inefficient production and consumption decisions, increased use of scarce resources for protection and profit, and hampered growth of productive capacity by discouraging saving and investment.\"},{\"question\":\"How has the relationship between money and prices changed, and why does that matter?\",\"answer\":\"The money–price relationship has become less stable and predictable since the 1980s, due to deregulation and new financial instruments. As a result, policymakers rely more on nonmonetary indicators to guide noninflationary policy.\"}]","Assessing and Resisting - Inflation | PDF",1789968396,13]