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Can growth take place and inflation remain unaffected ?

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  1. Dangers of growth regarding inflation
    1. Growth and inflation mechanisms
    2. Inflation / growth dilemma
  2. Growth without inflation?
    1. The Keynesian compromise
    2. The Monetarist thought

For a long time, nobody thought that inflation would be a serious matter of concern. Apart from a few cases of hyperinflation in the 1920s, there was no big concern with regard to inflation. The period of economic boom after the Second World War witnessed high rates of inflation which had negative effects on the world economy. The economic slump in the 1970's and 1980's due to inflation shook the world economy. To maintain a zero percent inflation rate is impossible. On the other side, economies are looking at a possibility of economic growth by maintaining a minimum inflation rate. In this document we will discuss about how inflation can be countered and the issues regarding econmic growth.

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