Inflation Needs to End at Some Point
Continued and rampant inflation harms an economy
on the large scale and on the personal scale. It has
devastating effects on people with fixed incomes,
notably seniors. It makes it difficult to compete on an
international scale because the currency becomes so
devalued. And so at some point, whether through the
course of events borne through devaluation or ag-
gressive action by monetary policy to reduce the cur-
rency supply, inflation ends. It cannot, and historically
never has, gone on forever.
You Can't Predict Inflation
Because there are so many complex, dynamic, inter-
active factors influencing the economy, it isn't really
possible to predict inflation. But harbingers include
substantial influx of spending by the government
within a short time frame and an increase in the in-
troduction of money by the treasury. These are ac-
tions taken to counteract a contraction in spending in
the private sector. Once the private sector recovers to
a normal pattern of spending, one might expect the
combination of all three actions to result in inflation.
