Inflation May Come From Good Thesis

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Further, inflation typically means higher interest rates are on their way (Walden and Williams). Of course, higher interest rates may it more expensive to borrow money and may limit investment.

As the graph on the next page shows, inflation is returned to the U.S. In 2007 after a long period of relative price stability. Further, many are concerned that future inflation will be high after all the government spending to get the economy back on track and to bail out troubled companies.

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Therefore, we may also get to experience first had why inflation is bad for savers, wage earners, production and productivity.

INFLATION

IN PER CENT)

SOURCE: Bank for International Settlements.....

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