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Can anyone give information about inflation causes and remedies?

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Can anyone give information about inflation causes and remedies?

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  1. Inflation causes...the Fed firing up the printing presses, creating a surplus of dollars. More dollars chasing the same amount of goods will drive prices up. Also when companies charge more for a good the consumer must in turn have higher wages which create a sort of price/wage spiral going higher and higher.

    Remedies..return to the gold standard and do away with the fiat currency system we are enslaved to.


  2. Inflation is a complex subject as there are many contributing factors and as many remedies, on the mangement of supply side as well as demand. It has come to mean that inflation is synonimous with Capitalism or rather Capital formation taking advantage of the uncertainity in money value.

    The one experiment (remedy) that bore fruit is cutting the wage spiral that Margaret Thatcher administered brutally to British labour. Labour unions were flattened to subserve the inflation goals of government. This and fiscal tightening has ensure the British inflation never went beyond the statutary upper limit of 3%, implying doubling rate in 23 1/2 years. It points to 'addind a zero' to the reatail prices, after 78 years.

    In a free economy with so many liberties guaranteed, it is difficult to put a cap on inflation. Whereas China can make it. There inflation has no relevence as all prices and even production and production costs are administered as it is deemed a national duty to keep things available for buying. Even the currency is pegged to the policy (of government).

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