Quotes about inflation
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“A key element in all Keynesian models is a ‘trade-off between inflation and real output: the higher is the inflation rate; the higher is output (or equivalently, the lower is the rate of unemployment).”

Robert Lucas Jr. (1937) American economist

"After Keynesian macroeconomics" 1978

“On a global scale, the main problem is not the inflation of human life, but its ever-increasing, mindless over-valuation. Emphasis on the inalienable right to life of foetuses, premature infants and the brain-dead has become a kind of collective mental illness.”

Pentti Linkola (1932) Finnish ecologist

Can Life Prevail?: A Revolutionary Approach to the Environmental Crisis. page 132

Life, Problem, Dead

“During the relatively brief period in the late 1960s when economists were pondering the possible obsolescence of business cycles, the scholarly discipline of macroeconomics showed signs of becoming fragmented into speciality areas devoted to components of the then popular large-scale econometric models-for example, consumption, investment, money demand, and the Phillips curve. But more recently the revival of severe real world business cycles, together with the revolutions associated with Milton Friedman's monetarism and Lucas's classical equilibrium models, has brought about a revival of interest in economic analysis that focuses on a few broad aggregates summarizing activity in the economy as a whole-nominal and real income, the inflation rate, and the unemployment rate.”

Robert J. Gordon (1940) American economist

Source: The American Business Cycle, 1986, p. 2

Money, World, Business

“Money is different from all other commodities: other things being equal, more shoes, or more discoveries of oil or copper benefit society, since they help alleviate natural scarcity. But once a commodity is established as a money on the market, no more money at all is needed. Since the only use of money is for exchange and reckoning, more dollars or pounds or marks in circulation cannot confer a social benefit: they will simply dilute the exchange value of every existing dollar or pound or mark. So it is a great boon that gold or silver are scarce and are costly to increase in supply.
But if government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this 'inflation' of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.”

Murray N. Rothbard (1926–1995) American economist of the Austrian School, libertarian political theorist, and historian

"Taking Money Back" http://mises.org/story/2882, in The Freeman (September - October 1995) http://www.fee.org/publications/the-freeman/.

Money, Shoe, Nature, Help

“A very plausible choice for when inflation might have happened would be when the energy scales of the universe were at the scale of grand unified theories… which unify the weak, strong and electromagnetic interactions into a single unified interaction... we're talking about energies which are about 1016 times the equivalent energy of a proton mass. …the initial patch would only have to be the ridiculously small size of about 10-28 cm across to be able to lead ultimately to the creation of everything that we see on the vast scale of which we see it.”

Alan Guth (1947) American theoretical physicist and cosmologist

Lecture 1: Inflationary Cosmology: Is Our Universe Part of a Multiverse? Part I.
The Early Universe (2012)

Strong, Universe, Time

“Nobody in the Republican Party so unashamedly advocates high and higher government spending, open immigration, monetary inflation, welfare redistribution, quotas, foreign military interventionism, foreign aid, presidential abuse of power, centrally directed demographic reshuffling, global trade treaties, and above all, racial pandering and civil-rights egalitarianism.”

Jeffrey Tucker (1963) American writer

Source: "Jack Kemp, American Socialist" by Jeffrey Tucker, The Rothbard-Rockwell Report, September 1996, UNZ.org, 2016-05-22 http://www.unz.org/Pub/RothbardRockwellReport-1996sep-00001,

“The doctrines of grace humble man without degrading him and exalt him without inflating him.”

Charles Hodge (1797–1878) American Presbyterian theologian

Source: Dictionary of Burning Words of Brilliant Writers (1895), P. 334.

“As soon as interest is abolished, inflation becomes unnecessary…”

Margrit Kennedy (1939–2013) German architect

Source: Interest and Inflation Free Money (1995), Chapter Two, Creating an Interest and Inflation Free Money, p. 41

“We are obviously all hurt by inflation. Everybody is hurt by inflation. If you really wanted to examine who percentage-wise is hurt the most in their incomes, it is the Wall Street brokers. I mean their incomes have gone down the most.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

At a conference on inflation, Washington, D.C. (September 19, 1974). In Report of the Health, Education, and Welfare, Income Security, Social Services Conference on Inflation (1974), pp. 804–5.
1970s

Hurt

“The process of dumbing people down so they’ll buy official figures showing inflation “under control” at levels of 1 to 2 percent or so (when it is actually more like 8 to 9 percent) is actually a fairly recent development.”

Peter D. Schiff (1963) American entrepreneur, economist and author

Quotes from Crash Proof (2006)

People

“You can't save free markets by socialism, I don't know where this idea ever came from. You save free markets by promoting free markets and sound money and balanced budgets. The whole reason why nobody wants to address the real problem is, we're spending a trillion dollars a year overseas running an empire, and it's coming to an end. This country is bankrupt, and we won't admit it. Eventually though, the dollar will go bust, and we will bring our troops home, and we will live within our means, but we ought to do it sensibly, rather than waiting for the collapse of the dollar, and this is what we're doing, we're on the verge of destroying our dollar. And then, you think we have problems now, problems then will be a lot worse, it'd look like the Weimar Republic, or a third world nation. And a lot of people know that, and they're scared to death, but we don't need to be making the problem worse by just propping up everything with more government programs, more inflation, and more helicopters, it won't work.”

Ron Paul (1935) American politician and physician

Fox Business Network, October 14, 2008 http://www.youtube.com/watch?v=_qzUtPq8pLE 2000s, 2006-2009

Death, Money, People, World

“While conditions in the United States because of the World War are serious, they are so much better than in the years following the close of the Civil War, that we who have had the double experience can be greatly encouraged. Then one-half of our country was devastated, its industries destroyed or paralyzed; now we are united and stronger in every way. Then we had a paper currency and a dangerous inflation, now we are on a gold standard and with an excellent banking and credit system. The development of our resources and wonderful inventions and discoveries since the Civil War place us in the foremost position to enter upon world commerce when all other nations have come as they must to co-operation and co-ordination upon lines for the preservation of peace and the promotion of international prosperity.”

Chauncey Depew (1834–1928) American politician

My Memories of Eighty Years (1922), p. 352

War, World, Peace, Way

“In the spring of 1920, General Motors found itself, as it appeared at the moment, in a good position. On account of the limitation of automotive production during the war there was a great shortage of cars. Every car that could be produced was produced and could be sold at almost any price. So far as any one could see, there was no reason why that prosperity should not continue for a time at least. I liken our position then to a big ship in the ocean. We were sailing along at full speed, the sun was shining, and there was no cloud in the sky that would indicate an approaching storm. Many of you have, of course, crossed the ocean and you can visualize just that sort of a picture yet what happened? In September of that year, almost over night, values commenced to fall. The liquidation from the inflated prices resulting from the war had set in. Practically all schedules or a large part of them were cancelled. Inventory commenced to roll in, and, before it was realized what was happening, this great ship of ours was in the midst of a terrific storm. As a matter of fact, before control could be obtained General Motors found itself in a position of having to go to its bankers for loans aggregating $80,000,000 and although, as we look at things from today's standpoint, that isn't such a very large amount of money, yet when you must have $80,000,000 and haven't got it, it becomes an enormous sum of money, and if we had not had the confidence and support of the strongest banking interests our ship could never have weathered the storm.”

Alfred P. Sloan (1875–1966) American businessman

Source: Alfred P. Sloan in The Turning Wheel, 1934, p. 185-6; Retrospective vein President Alfred P. Sloan, Jr., addressing the automobile editors of American newspapers at the Proving Ground at Milford, Michigan in 1927.

Money, War, Cars, Confidence

“Our country is wallowing in a miasma of political and class conflict, of greed and special interest, with regard to budget deficits, inflation and rising unemployment, the threats of both a bloody war and a devastating recession. How did we get into this mess? Because the press, during the 1980s committed one of the greatest crimes of the 20th century. The media took a dive, caved in, and did not tell the American people the price they would eventually pay for Reaganomics.”

Carl Rowan (1925–2000) American journalist

while accepting the Allen H. Neuharth Award for Excellence in Journalism from the University of South Dakota in 1990.
Quoington Star article entitled "Has President Nixon Gone Crazy?"

War, People, Country

“And the reason the federal government wasn’t given that power [to create paper money or issue bills of credit] was because the framers didn’t want it to have the power to create inflation. They had just experienced it firsthand with the Continental dollar, which ended up being worth around 10 cents and gave rise to the expression “not worth a Continental.””

Peter D. Schiff (1963) American entrepreneur, economist and author

Quotes from Crash Proof (2006)

Money

“The time has come to speak out. Britain is now locked in a vicious spiralling interest rates…The net result of completing the vicious circle is that prices have increased, the rate of inflation has gone up, the money supply has increased, unemployment has gone up, the rate of bankruptcies has increased, the industrial base has been further eroded, the Government's borrowing requirement has increased and as a result there is more pressure to raise interest rates yet again, to be followed inevitably by the same vicious circle. It is this that must be broken.”

Edward Heath (1916–2005) Prime Minister of the United Kingdom (1970–1974)

Speech to the Federation of Conservative Students in Manchester (6 October 1981), quoted in The Times (7 October 1981), p. 6.
Post-Prime Ministerial

Money, Time

“What we hear about eternal inflation or the string landscape, seems somehow unavoidably to lead to some kind of multiverse. However, it seems to me there is a fundamental problem there. Once of course you have the multiverse, then you can start playing around and try to find probability or getting to the anthropic principle, or whatever. But the point is that the picture is essentially a classical one, and it is difficult to see that if you have many universes, coming essentially with an inflationary state, that there would not be plenty of horizons in this. Now the quantum mechanics of horizons is, I think, perfectly not understood. The simplest example is the black hole, where after all nobody knows really if the problem lies in the singularity or if it lies really already in the horizon.”

François Englert (1932) Belgian theoretical physicist

as quoted in: [Gross, David; Henneaux, Marc; Sevrin, Alexander, eds., The Theory of the Quantum World: Proceedings of the 25th Solvay Conference on Physics, Brussels, Belgium 19-22 October 2011, World Scientific, 2013, 309, https://books.google.com/books/about/The_Theory_of_the_Quantum_World.html?id=0o-6CgAAQBAJ&pg=PA309]

Problem, Thinking, Universe

“There is a big logical jump between acknowledging the destructive nature of hyperinflation and arguing that the lower the rate of inflation, the better.”

Ha-Joon Chang book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Source: Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008), Ch. 7, There is inflation and there is inflation, p. 150

Nature

“Let's turn inflation over to the post office. That'll slow it down.”

Morris Udall (1922–1998) American politician

Quoted in Richard Severo, "Morris K. Udall, Fiercely Liberal Congressman, Dies at 76," http://query.nytimes.com/gst/fullpage.html?res=9E03E7DC173DF937A25751C1A96E958260&sec=&spon=&pagewanted=3 The New York Times (1998-12-14)

“My decision to leave applied mathematics for economics was in part tied to the widely-held popular belief in the 1960s that macroeconomics had made fundamental inroads into controlling business cycles and stopping dysfunctional unemployment and inflation.”

Robert C. Merton (1944) American economist

Robert C. Merton, " Robert C. Merton - Biographical http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1997/merton-bio.html," at Nobelprize.org, 1997

Mathematics, Business, Decision, Parting

“Low inflation and government prudence may be harmful for economic development.”

Ha-Joon Chang book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Prologue, p. 18
Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008)

“I was informed this afternoon by the distinguished Secretary of the Treasury that his preliminary estimates indicate that our balance of payments deficit has been reduced from $2.8 billion in 1964 to $1.3 billion, or less, in 1965. This achievement has been made possible by the patriotic voluntary cooperation of businessmen and bankers working with your government. We must now work together with increased urgency to wipe out this balance of payments deficit altogether in the next year. And as our economy surges toward new heights we must increase our vigilance against the inflation which raises the cost of living and which lowers the savings of every family in this land. It is essential, to prevent inflation, that we ask both labor and business to exercise price and wage restraint, and I do so again tonight. I believe it desirable, because of increased military expenditures, that you temporarily restore the automobile and certain telephone excise tax reductions made effective only 12 days ago. Without raising taxes—or even increasing the total tax bill paid—we should move to improve our withholding system so that Americans can more realistically pay as they go, speed up the collection of corporate taxes, and make other necessary simplifications of the tax structure at an early date.”

Lyndon B. Johnson (1908–1973) American politician, 36th president of the United States (in office from 1963 to 1969)

1960s, State of the Union Address (1966)

Family, Exercises, Business, Speed

“The sense of shame that the Chancellor should have felt is far more personal. It is a sense of shame for having taken over an economy with a £1,000 million surplus and running it to a £2,000 million deficit. It is a sense of shame for having conducted our internal financial affairs with such profligacy that our public accounts are out of balance as never before. It is a sense of shame for having presided over the greatest depreciation of the currency, both at home and abroad, in our history. It is a sense of shame for having left us at a moment of test far weaker than most of our neighbours…There is, I believe, a greater threat to the effective working of our democratic institutions than most of us have seen in our adult lifetimes. I do not believe that it springs primarily from the machinations of subversively-minded men, although no doubt they are there and are anxious to exploit exploitable situations. It comes much more dangerously from a widespread cynicism with the processes of our political system. I believe that the Chancellor contributed to that on Monday. I believe that it poses a serious challenge to us all…None of us should seek salvation through chaos. There is a duty too to recognise that we could slip into a still worse rate of inflation and a world spiral-ling downwards towards slump, unemployment and falling standards, with our selves, temporarily at least, well in the vanguard. What is required is neither an imposed solution nor an open hand at the till. The alternative to reaching a settlement with the miners is paralysis…The task of statesmanship is to reach a settlement but to do it in a way which opens no floodgates for if they were opened, it would not only damage everyone but it would undermine the differential which the miners deserve and which the nation now needs them to have.”

Roy Jenkins (1920–2003) British politician, historian and writer

Speech http://hansard.millbanksystems.com/commons/1973/dec/19/economic-and-energy-situation in the House of Commons (19 December 1973) 1970s

Men, World, Way, Home

“Question: If you could pick one cause that has gotten us here, what'd you say it is?
Ron Paul: Easy money. The Federal Reserve artificially lowering interest rates, deceiving the people, the investors, the savers, into believing that there's a lot of savings out there, and that we should invest more, build more houses, more cars. It's the malinvestment, which is every bit as dangerous, from the inflation of the money supply, as is the high prices that usually come.”

Ron Paul (1935) American politician and physician

Fox Business Network, March 24, 2009 http://www.youtube.com/watch?v=hkJ1sa9mxCU 2000s, 2006-2009

Money, People, Cars, Question

“Mathematics is too arduous and uninviting a field to appeal to those to whom it does not give great rewards. These rewards are of exactly the same character as those of the artist. To see a difficult uncompromising material take living shape and meaning is to be Pygmalion, whether the material is stone or hard, stonelike logic. To see meaning and understanding come where there has been no meaning and no understanding is to share the work of a demiurge. No amount of technical correctness and no amount of labour can replace this creative moment, whether in the life of a mathematician or of a painter or musician. Bound up with it is a judgement of values, quite parallel to the judgement of values that belongs to the painter or the musician. Neither the artist nor the mathematician may be able to tell you what constitutes the difference between a significant piece of work and an inflated trifle; but if he is not able to recognise this in his own heart, he is no artist and no mathematician.”

Norbert Wiener (1894–1964) American mathematician

Ex-Prodigy: My Childhood and Youth (1964)

Life, Mathematics, Understanding, Heart

“Inflation takes advantage of this possibility… to let gravity be the repulsive force that drove the universe into the period of expansion that we call the Big Bang. In fact, when one combines general relativity with conventional ideas, now, in particle physics there really is a pretty clear indication, I should say, not quite a prediction… that at very high energy densities one expects to find states of matter which literally turn gravity on its head and cause gravity to become repulsive.”

Alan Guth (1947) American theoretical physicist and cosmologist

Lecture 1: Inflationary Cosmology: Is Our Universe Part of a Multiverse? Part I.
The Early Universe (2012)

Idea, Universe

“The new arguments for rules take an entirely different tack. They are based neither on the ignorance nor the knavery of public officials and, in fact, assume that everyone knows how the economy operates—even the government! Moreover, the government's objectives are assumed to coincide with the people's objectives, and everyone has rational expectations. Despite these seemingly ideal circumstances, modern critics argue that a central bank left with discretion will err systematically in the direction of excessive inflation. To remedy this distortion, they advocate a fixed rule.”

Alan Blinder (1945) economist

Source: Central Banking in Theory and Practice. 1998, p. 47

People

“The sentence, 'stopping the printing presses,' is a figurative expression, because it is being done now by creating credit by the Federal Reserve System. But this is government action — all inflation is ultimately the result of activities which government determines and can control. And all inflations have been stopped in the past by the government stopping creating money, or preventing the central bank from creating more money. May I add just one thing? See, all inflations have been stopped by people who created or believed in a very naive form of the Quantity Theory, and acted on that. It may be wrong, but it is the only adequate theory effective to stop an inflation.”

Friedrich Hayek (1899–1992) Austrian and British economist and Nobel Prize for Economics laureate

1975 interview https://mises.org/library/hayek-meets-press-1975 on "Meet the Press." 1960s–1970s

Money, People, Past

“The evolution of earth-cult to sky-cult shifts woman into the nether realm. Her mysterious procreative powers and the resemblance of her rounded breasts, belly, and hips to earth’s contours put her at the center of early symbolism. She was the model for the Great Mother figures who crowded the birth of religion worldwide. But the mother cults did not mean freedom for women. On the contrary […] cult objects are prisoners of their own symbolic inflation. Every totem lives in taboo.”

Camille Paglia (1947) American writer

Source: Sexual Personae: Art and Decadence from Nefertiti to Emily Dickinson (1990), p. 8

Women, Religion, Birth, Freedom

“In an ever-advancing spiral the public was made to believe that only Hollywood-style extravaganzas were worth seeing and that only they could give an accurate sense of the world of art. The resulting box-office pressure made the museums still more dependent on corporate funding. Then came the recessions of the 1970s and 1980s. Many individual donors could no longer contribute at the accustomed rate, and inflation eroded the purchasing power of funds. To compound the financial problems, many governments, facing huge deficits—often due to sizable expansions of military budgets—cut their support for social services as well as their arts funding. Again museums felt they had no choice but to turn to corporation for a bail-out.”

Hans Haacke (1936) conceptual political artist

1980s, "Museums, Managers of Consciousness," 1983

World, Art, Support, Problem

“It is worth recalling that during the 1960s, and again in the 1970s, Britain's growth rate was the lowest of all the major European economies. By contrast, during the 1980s, our growth rate has been the highest of all the major European economies. This greatly improved growth performance has been accompanied by falling inflation, which at 3½ per cent. in 1986 reached the lowest figure for almost 20 years.”

Nigel Lawson (1932) British Conservative politician and journalist

Speech http://hansard.millbanksystems.com/commons/1987/mar/17/the-economic-background in the House of Commons (17 March 1987)

“[Apple] carries a valuation of an image that is over-inflated due largely to the powerful efforts of Steve Jobs who made the company appear magical. As we end the year, the valuation of the company appears to have massive downward pressure and this is largely because the architect of that massively powerful image has passed — and along with that passing Apple's apparent leadership.”

Rob Enderle (1954) American financial analyst

2013 to See HP or RIM Most Improved, Apple Falling and Facebook Toast http://itbusinessedge.com/blogs/unfiltered-opinion/2013-to-see-hp-or-rim-most-improved-apple-falling-and-facebook-toast.html in IT Business Edge (19 December 2012)

Effort, Appearance

“Hyperinflation is not going to happen in this country, will never happen… The Fed putting so much money into the system is not going to create the risk of hyperinflation in the future. We have a strong independent Federal Reserve with a very strong mandate from the Congress, and they will do what's necessary to keep inflation low and stable over time.”

Timothy Geithner (1961) American central banker and politician

This Week with George Stephanopoulos, March 29, 2009 http://abcnews.go.com/ThisWeek/Story?id=7200273&page=4

Money, Strong, Time, Future

“Nocht is your fairnes bot ane faiding flour,
Nocht is your famous laud and hie honour
Bot wind Inflat in uther mennis eiris.”

Robert Henryson The Testament of Cresseid

Source: The Testament of Cresseid, Line 461.

“The natural tendency of the state is inflation.”

Murray N. Rothbard (1926–1995) American economist of the Austrian School, libertarian political theorist, and historian

The Case for a 100 Percent Gold Dollar (1974) http://mises.org/story/1829.

Nature

“National-Socialism came to power in Germany in the same year as Roosevelt was elected President... Roosevelt comes from a rich family and belongs to the class whose path is smoothed in the Democracies. I am only the child of a small, poor family and had to fight my way by work and industry. When the Great War came, Roosevelt occupied a position where he got to know only its pleasant consequences, enjoyed by those who do business while others bleed... I shared the fate of millions, and Franklin Roosevelt only the fate of the so-called Upper Ten Thousand... he made profits out of the inflation, out of the misery of others, while I, together with many hundreds of thousands more, lay in hospital.”

Adolf Hitler (1889–1945) Führer and Reich Chancellor of Germany, Leader of the Nazi Party

Speech Declaring War Against the United States http://www.jewishvirtuallibrary.org/hitler-s-speech-declaring-war-against-the-united-states (December 11, 1941) 1940s

Fate, War, Family, Way

“Our presence will serve as an incentive for al Qaeda to grow in numbers and motivate more suicide bombers. An indefinite presence, whether in Iraq, Afghanistan, or Pakistan, will continue to drain our financial resources, undermine our national defense, demoralize our military and exacerbate our financial crisis. All this will be welcomed by Osama Bin Laden, just as he planned it. It's actually more than he had hoped for. […] The war in Afghanistan and Pakistan will be much bigger, unless the dollar follows the path of the dollar-based world financial system and collapses into runaway inflation. In this case, the laws of economics and the realities of history will prove superior to the madness of maintaining a world empire financed by scraps of paper. Our military prowess, backed by a nuclear arsenal, will not suffice in overcoming the tragedy of a currency crisis. Soviet nukes did not preserve its empire or the communist economy.”

Ron Paul (1935) American politician and physician

The end is not near https://www.youtube.com/watch?v=WuPeExhmuQQ, (4 March 2009) 2000s, 2006-2009

War, World, Law, Hope

“Your friend, rather perversely I think, refers to the "disastrous results" that followed the monetary tightening of Volcker and other more monetarist-minded central bankers without even hinting at the facts that that the tightening was aimed at bringing down inflation rates, and that it succeeded remarkably well in doing precisely that. In other words, the tightening did precisely what monetarism said it would do, and what monetarists' critics at the time, wedded to the view that monetary policy was ineffective, and that inflation was entirely caused by OPEC (or by unions, or by anything except monetary policy) insisted it could not do. And yet your friend imagines that the experience proved the monetarists wrong!”

George Selgin (1957) economist

In Defense of Monetarism (2008)

Imagination, Thinking, Wedding, Time

“On principle i relative prices will be lowered in the interests of external balance and domestic expenditure will be inflated in the interests of internal balance. Internal balance will be very quickly restored although there is no net change in external balance. Relative prices must, therefore, continue to be lowered, which will tend now to produce a boom at home. The inflationary financial policy must, therefore, be replaced by a deflationary policy. In the end relative prices will be substantially lowered, while there may be a small net inflation or deflation of domestic expenditure by financial policy.”

James Meade (1907–1995) British economist

Source: The balance of payments, 1951, p. 160; As cited in: Metaxas & Weber (2013, p. 22)

Home, Change

“Market Anti-Inflation Plans
In such a context, it should be clear that balancing a nominal budget will solve nothing, and attempting to achieve such a spurious balance will produce much mischief.”

William Vickrey (1914–1996) Canadian noble laureate in economics

William Spencer Vickrey et al. Full Employment and Price Stability: The Macroeconomic Vision of William S. Vickrey. p. 4

“The economic policy issues that we debate today—trade policy, inflation, the proper role of government, the eradication of poverty, and the means of raising the rate of economic growth—have been discussed by economists for more than two centuries. Many of today’s economic policies—both the good ones and the bad—are the result of the ideas of those past economists. And many of today’s debates about economic policy can be understood only by those who have at least some familiarity with the ideas of earlier economists.
The giants of economic science during the past two hundred years have been men concerned with the critical policy issues of their time. They studied the working of the economy in order to advocate better economic policies. But despite their concern with policy, they were not polemicists or politicians but men who sought to persuade their contemporaries in government and in the broader public by analysis and evidence that would meet the standards of professional debate.”

Martin Feldstein (1939–2019) American economist

Martin Feldstein (1989), Foreword to New Ideas from Dead Economists by Todd Buchholz.

Men, Idea, Study, Science

“No one can deny that today the major cause of the inflation from which we are suffering is the excessive wage demands…It is the responsibility of an employer, direct or indirect…if they go their own way and accede to irresponsible wage demands which damage their own firms and create a loss of jobs for those who work in them, then the Government are certainly not going to step in and rescue them from the consequences of their own actions.”

Edward Heath (1916–2005) Prime Minister of the United Kingdom (1970–1974)

Speech to Conservative Party Conference (10 October 1970), quoted in John Campbell, Edward Heath (London: Jonathan Cape, 1993), p. 311.
Prime Minister

Way, Suffering, Loss

“I want to make sure you keep your eyes on the ball, that is, the two basic missions of a central bank. The first is maintaining macroeconomic stability: maintaining stable growth and keeping inflation low and stable. The principal policy tool for maintaining macroeconomic stability is monetary policy. In normal times, the Fed and other central banks use open market operations—purchases and sales of securities in markets—to move interest rates up or down, and in doing so try to create a more stable macroeconomic environment.
The second part of a central bank's mission is maintaining financial stability. Central banks are focused on trying to ensure that the financial system functions properly, and in particular, they want to prevent, if possible, and if not, to mitigate the effects of a financial crisis or a financial panic.”

Ben Bernanke (1953) American economist

Lecture 2: The Federal Reserve after World War II
The Federal Reserve and the Financial Crisis (2012)

Time, Parting

“Currency competition and free banking might increase the efficiency of the financial system, and bring some small triangle welfare gains. But the key question is whether their adoption would improve macroeconomic performance. Even though Salin argues (p. 281) that ‘the best system is that which produces the least inflation’, fluctuations in output are also expensive.
Hayek states that the adoption of his proposal would end recessions. There is absolutely no reason to believe that. Nineteenth century history is evidence that free banking and currency issue, in the wrong legal and regulatory framework, can produce rather than reduce instability. The proponents of free banking and currency issue in this volume do not go much beyond a general belief in competition in justifying their views; they have certainly not explored the necessary legal and regulatory environment in any detail.”

Stanley Fischer (1943) American economist

Stanley Fischer, "Friedman versus Hayek on Private Money: Review Essay" (1986)

History, Question

“All my adult life I have seen British governments driven off their virtuous pursuit of low inflation by market problems or political pressures. I was under no illusions when I took Britain into the ERM. I said at the time that membership was no soft option. The soft option, the devaluer's option, the inflationary option, that would in my opinion be a betrayal of Britain's future.”

John Major (1943) Former Prime Minister of the United Kingdom

Robin Oakley, "Major rejects devaluation as betrayal of the future", The Times, 11 September 1992.
Speech to the Scottish CBI, 10 September 1992, six days before Black Wednesday when the Pound was forced out of the ERM.
1990s, 1992

Life, Problem, Betrayal, Time

“When a person inflates his own importance, he does not see his own sins; and his sins get bigger right along with him.”

Leo Tolstoy (1828–1910) Russian writer

Source: Path of Life (1909), p. 108

Personality

“This option the consumerit could. The present admirable constitution of the courts of justice in England was, perhaps, originally in a great measure, formed by this emulation, which anciently took place between their respective judges; each judge endeavouring to give, in his own court, the speediest and most effectual remedy, which the law would admit, for every sort of injustice. (The Wealth of Nations [New York: Modern Library, 1937]; originally 1776), p. 679--> retains of being able to buy security wherever he pleases brings about a constant emulation among all the producers, each producer striving to maintain or augment his clientele with the attraction of cheapness or of faster, more complete and better justice.If, on the contrary, the consumer is not free to buy security wherever he pleases, you forthwith see open up a large profession dedicated to arbitrariness and bad management. Justice becomes slow and costly, the police vexatious, individual liberty is no longer respected, the price of security is abusively inflated and inequitably apportioned, according to the power and influence of this or that class of consumers. The protectors engage in bitter struggles to wrest customers from one another. In a word, all the abuses inherent in monopoly or in communism crop up.”

Gustave de Molinari (1819–1912) Belgian political economist and classical liberal theorist

Source: The Production of Security (1849), p. 57-59

Justice, Law, Communication, Wealth

“The gravitational repulsion created by this small patch of repulsive gravity material would be, then, the driving force of the Big Bang and it would cause the region to undergo exponential expansion… there is a certain doubling time, and if you wait the same amount of time it doubles again, and if you wait the same amount of time it doubles again… and it's because these doublings build up so dramatically, it doesn't take very much time to build the whole universe. In about 100 doublings this tiny patch of 10-28 cm can become large enough, not to be the universe, but to be a small marble-sized region which will then ultimately become the observed universe, as it continues to coast outward after inflation ends.”

Alan Guth (1947) American theoretical physicist and cosmologist

Lecture 1: Inflationary Cosmology: Is Our Universe Part of a Multiverse? Part I
The Early Universe (2012)

Universe, Time, Waiting

“Inflation, being a fraudulent invasion of property, could not take place on the free market.”

Murray N. Rothbard book What Has Government Done to Our Money?

What Has Government Done to Our Money? (1980)

“These movies belonged to the twentieth and early twenty-first centuries—that period of great, unsustainable, and hedonistic prosperity, driven by the burning of Earth’s reserves of perishable oil, which culminated in the False Tribulation, and the wars, and the plagues, and the painful dwindling of inflated populations to more reasonable numbers.”

Robert Charles Wilson book Julian Comstock: A Story of 22nd-Century America

Source: Julian Comstock: A Story of 22nd-Century America (2009), p. 29

Pain, War, Falseness

“Legitimate economic expansions, financed by actual savings, do not need busts. It is only the inflation-induced varieties that sow the seeds of their own destruction.”

Peter D. Schiff (1963) American entrepreneur, economist and author

Quotes from Crash Proof (2006)

“Conflict is necessary for growth. But too often conflict becomes a haven for the soul. Until one day, the soul can no longer free itself. In real growth the soul learns to fly rather than having the ego inflated with praise from accomplishments as if it were a balloon. Only because it buys time, do we develop a strong and protective ego. This is the early stage in the soul’s evolution, until such time when the soul hatches out of its shell, which is the ego, into a new world in which there is incomparable beauty.”

Eugene J. Martin (1938–2005) American artist

Annotated Drawings by Eugene J. Martin: 1977-1978

World, Beauty, Soul, Strong

“Tangibles trump conceptuals. Modern fiat currencies are generally accepted, but have essentially no backing. Because they are largely a by-product of interest-bearing debt, modern currencies are destined for inflation. In the long run, inflation dooms fiat currencies to collapse. The majority of your assets should be invested in productive farmland and other tangibles such as useful hand tools. After you have your key logistics squared away, anything extra should be invested in silver and gold.”

James Wesley Rawles (1960) Survivalist-fiction author and blogger

Source: How to Survive the End of the World as We Know It, Plume, New York (2009), p. 14

“Although I realize that Austrian-school economists have themselves been highly critical of monetarism, many of its most fundamental claims are in fact fully consistent with their own understanding of monetary theory. Indeed, back in the 1970s the difference between Austrian and monetarists writings about money seemed trivial compared to the difference between them and the writings of other (broadly "Keynesian") economists. I recall very well how I myself got "deprogrammed" from mainstream thinking about money and inflation by reading Henry Hazlitt's wonderful book, The Inflation Problem, and How to Resolve It. Hazlitt was, of course, a thoroughgoing Misesian. Yet no one who reads his book can fail to note the many crucial similarities between his arguments and those of Milton Friedman concerning the same subject.”

George Selgin (1957) economist

In Defense of Monetarism (2008)

Money, Books, School, Understanding

“First and foremost, Keynesian economics is a theory of aggregate demand and of the effects of aggregate demand on real output and inflation.”

Alan Blinder (1945) economist

"The fall and rise of Keynesian economics", (1988)

“And since any inflation, however modest at first, can help employment only so long as it accelerates, adopted as a means of reducing unemployment, it will do so for any length of time only while it accelerates. "Mild" steady inflation cannot help—it can lead only to outright inflation. That inflation at a constant rate soon ceases to have any stimulating effect, and in the end merely leaves us with a backlog of delayed adaptations, is the conclusive argument against the "mild" inflation represented as beneficial even in standard economics textbooks.”

Friedrich Hayek (1899–1992) Austrian and British economist and Nobel Prize for Economics laureate

1980s Unemployment and the Unions: Essays on the Impotent Price Structure of Britain and Monopoly in the Labour Market https://books.google.com/books?id=zZu3AAAAIAAJ&q=%22only+while+it+accelerates%22&dq=%22only+while+it+accelerates%22&hl=en&sa=X&ei=HBhsUYjUGMv34QSW-YDgDg&redir_esc=y (1984) 1980s and later

Time, Help

“The [pay] policy is principally designed to hold down wages rather than to check inflation. Inflation is being used as an excuse to destroy free trade union bargaining.”

Tony Benn (1925–2014) British Labour Party politician

Speech in the House of Commons (7 November 1973) http://hansard.millbanksystems.com/commons/1973/nov/07/price-and-pay-code 1970s

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

Thomas Jefferson (1743–1826) 3rd President of the United States of America

Respectfully Quoted says this is "obviously spurious", noting that the OED's earliest citation for the word "deflation" is from 1920. The earliest known appearance of this quote is from 1935 (Testimony of Charles C. Mayer, Hearings Before the Committee on Banking and Currency, House of Representatives, Seventy-fourth Congress, First Session, on H.R. 5357, p. 799)
Misattributed

Children, People

“[G]iven our inability over the past two decades to deal with an unbreakable chain of unemployment, debt, inflation and no real growth, we have drifted farther and farther out into a cold, unfriendly, confusing sea. The new certitude of those in positions of authority — those out of the water — is that the certain answer is to cut away the life preservers.”

John Ralston Saul book The Unconscious Civilization

The Unconscious Civilization (1995)

Life, Water, Past, Sea

“They are detached from the language and inflated like little balloons.”

Wolcott Gibbs

On the pretentious words used by lawyers, soldiers, and literary critics, such as "luminous" and "taut." Strunk & White, The Elements of Style 3rd ed. (Boston: Allyn, 1979) page 83.

“Yeah. ‘Environment’ was very big for a while. Ecology Now stickers on the windshields of cars belonging to hairy young men—cars which dripped oil wherever they parked and took off in clouds of smoke thicker than your pipe can produce…Before long, the fashionable cause was something else, I forget what. Anyhow, that whole phase—the wave after wave of causes—passed away. People completely stopped caring…
I feel a moral certainty that a large part of the disaster grew from this particular country, the world’s most powerful, the vanguard country for things both good and ill…never really trying to meet the responsibilities of power.
We’ll make halfhearted attempts to stop some enemies in Asia, and because the attempts are halfhearted we’ll piss away human lives—on both sides—and treasure—to no purpose. Hoping to placate the implacable, we’ll estrange our last few friends. Men elected to national office will solemnly identify inflation with rising prices, which is like identifying red spots with the measles virus, and slap on wage and price controls, which is like papering the cracks in a house whose foundations are sliding away. So economic collapse brings international impotence…As for our foolish little attempts to balance what we drain from the environment against what we put back—well, I mentioned that car carrying the ecology sticker.
At first Americans will go on an orgy of guilt. Later they’ll feel inadequate. Finally they’ll turn apathetic. After all, they’ll be able to buy any anodyne, any pseudo-existence they want.”

Poul Anderson book There Will Be Time

Source: There Will Be Time (1972), Chapter 5 (pp. 53-54)

Men, People, World, Hope

“We shall talk as if the objective of internal balance were simply that of maintaining a level of total demand for all the country’s products sufficiently high to maintain full employment, but not so high as to lead to a continuing inflation of money prices and costs.”

James Meade (1907–1995) British economist

Source: The balance of payments, 1951, p. 106; As cited in: Metaxas & Weber (2013, p. 20)

Money, Country

“It's bad to use words like 'genius' unless you are talking about the late Jean-Michel Basquiat, the black Chatterton of the 80s who, during a picturesque career as sexual hustler, addict and juvenile art-star, made a superficial mark on the cultural surface by folding the conventions of street graffiti into those of art brut before killing himself with an overdose at the age of twenty-seven. The first stage of Basquiat's fate, in the mid-80s, was to be effusively welcomed by an art industry so trivialized by fashion and blinded by money that it couldn't tell a scribble from a Leonardo. Its second stage was to be dropped by the same audience, when the novelty of his work wore off. The third was an attempt at apotheosis four years after his death, with a large retrospective at the Whitney Museum designed to sanitise his short, frantic life and position him as a kind of all-purpose, inflatable martyr-figure, thus restoring the dollar value of his oeuvre in a time of collapsing prices for American contemporary art. One contributor to the catalogue proclaimed that "Jean remains wrapped in the silent purple toga of immortality"; another opined that "he is as close to Goya as American painting has ever produced." A third, not to be outdone, extolled Basquiat's "punishing regime of self-abuse" as part of "the disciplines imposed by the principle of inverse ascetism to which he was so resolutely committed."”

Robert Hughes (1938–2012) Australian critic, historian, writer

These disciplines of inverse ascetism, one sees, mean shooting smack until you drop dead.
Page 195
Culture of Complaint (1993)

Life, Death, Money, Fate

“Hayek’s blind spot with regard to politics was clear in the early 1980s when the first Thatcher government, in an attempt to reduce inflation and bring the public finances closer to a balanced budget, was raising interest rates and cutting public spending. As he had done during the 1930s, Hayek attacked these policies as not being severe enough. It would be better, he told me in a conversation we had around this time, if Thatcher imposed a more drastic contraction on the economy so that the wage-setting power of the trade unions could be broken. He appeared unfazed by unemployment, which was already higher (more than three million people) than at any time since the 1930s, and would rise much further if his recommendations were accepted.”

John Gray (1948) British philosopher

The Friedrich Hayek I knew, and what he got right - and wrong (2015)

People, Appearance, Time

“Once the true relationship between inflation and unemployment is understood, with luck and skill, a free lunch is possible.”

Paul Ormerod book The Death of Economics

Part II, Chapter 6, Unemployment and Inflation, p. 137
The Death of Economics (1994)

“"Average" isn't so hot at the race track given those steep track takes. "Average" is pretty decent for stocks, something like 6 percent above the inflation rate. For a buy-and -hold investor, commissions and taxes are small.”

William Poundstone (1955) American writer

Part Three, Arbitrage, This Is Not the Time To Buy Stocks, p. 134
Fortune's Formula (2005)

“Never had a date
That you couldn't inflate”

"Weird Al" Yankovic (1959) American singer-songwriter, music producer, accordionist, actor, comedian, writer, satirist, and parodist

"You're Pitiful" (2006), Internet-released song "You're Pitiful", 2007-01-22, Al-oholics Anonymous, 2006, June, MP3 http://www.al-oholicsanonymous.com/sounds/yourepitiful.mp3, Song lyrics

“We propose first to expand credit in order to create demand. That new and greater demand must, of course, be met by a new and greater supply of goods, or all the evils of inflation and price rise will result. Here our Socialist planning must enter in. We must see that more goods are forthcoming to meet the new demand.”

Oswald Mosley (1896–1980) British politician; founder of the British Union of Fascists

Revolution by Reason, p. 31, quoted in Robert Skidelsky, Oswald Mosley (Papermacs, 1981), p. 145.

Evil

“[Attlee] reminded the delegates that it was vital to reduce costs by greater efficiency, which meant that both employers and employed had to seek in every way to attain it. He did not believe in lowering wages as a means of reducing costs, but equally it was necessary to realize that increases of wages that were not matched by increases of production would gravely impair their chances of getting rapidly over their difficulties. Increased demands for money payments, when there was no increase of goods to meet them led straight away to inflation. There was a danger that when a justifiable advance in wages for an under-paid section of the workers had been granted it resulted in demands from those who had enjoyed higher wages to maintain the same differential. This was bad economics and bad social morality. He had been disturbed at the evidence that some people were abusing the social services in such matters as sickness benefit. They could not have them sabotaged by misuse.”

Clement Attlee (1883–1967) Former Prime Minister of the United Kingdom

Speech to the Trades Union Congress at Bridlington (7 September 1949), quoted 'Chronology, 18 August 1949 - 7 September 1949', Chronology of International Events and Documents, Vol. 5, No. 17 (18 August-7 September 1949), p. 583
1940s

Money, People, Way, Chance

“In the present decade, the U. S. economy has undergone its first major depression since the 1930’s, to the accompaniment of inflation rates in excess of 10 percent per annum. These events have been transmitted […] to other advanced countries and in many cases have been amplified. These events did not arise from a reactionary reversion to outmoded, 'classical' principles of tight money and balanced budgets. On the contrary, they were accompanied by massive government budget deficits and high rates of monetary expansion, policies which, although bearing an admitted risk of inflation, promised according to modern Keynesian doctrine rapid real growth and low rates of unemployment. That these predictions were wildly incorrect and that the doctrine on which they were fundamentally flawed are now simple matters of fact, involving no novelties of economic theory. The task now […] is to sort through the wreckage, determining which features of that remarkable intellectual event called the Keynesian Revolution can be salvaged and put to use and which others must be discarded.”

Robert Lucas Jr. (1937) American economist

As contained in The Rational Expectations Revolution: Readings From the Front Line https://en.wikiquote.org/wiki/Special:BookSources/0262631555, Preston J. Miller, MIT Press (reprint 1994), pp. 5-6 "After Keynesian macroeconomics" 1978

Money, Country

“Bad boys have long fascinated audiences as well as storytellers, whatever the medium. Such rebels, often without causes beyond self-gratification, have been at the center of much of contemporary popular culture. One of the paradigms for such dramatized morality tales is Mozart's magnificent "Don Giovanni," whose musical and theatrical turns evoked awe and laughter and terror from the more that 1,500 music fans who on Saturday night flocked to Lawrence's Lied Center for the Mozart Festival Opera production. The libertine is thoroughly disreputable. Nonetheless, we look on in fascination because of his devilish smile, dashing good looks, ready wit, and the audacity of his hyper-inflated ego. If you can imagine a young Jack Nicholson with mustache, cape and a flair for sword play, you've got it. Lithuanian baritone Vytautas Juozapaitis gave the Don appropriate swagger and voice. He also brought a comic twist that gave the roué a touch of the trickster. Stepping out of character for a second in the midst of a briskly paced recitative, he paused, turned, and looked up at the supertitled English translation as if to check his lines. It was a joke shared by all. The pleasure of performing, even in the opera's most dramatic moments, was evident.”

Vytautas Juozapaitis (1963) Lithuanian opera singer

Chuck Berg, "Mozart's 'Don Giovanni' triumphs", Topeka Capital Journal (February, 2007) http://www.jennykellyproductions.com/prod_mozart_review.htm

Pleasure, Smile, Music, Imagination

“Gutenberg’s press flooded the market. In the early 1500s John Tetzel, the head pardoner for German territories, would sweep into a town with a collection of already printed indulgences, hawking them with a phrase usually translated as “When a coin a coffer rings / A soul for heaven springs.” The nakedly commercial aspects of indulgences, among other things, enraged Martin Luther, who in 1517 launched an attack on the Church in the form of his famous Ninety-five Theses. He first nailed the theses to a church door in Wittenberg, but copies were soon printed up and disseminated widely. Luther’s critique, along with the spread of Bibles translated into local languages, drove the Protestant Reformation, plunging the Church (and Europe) into crisis. The tool that looked like it would strengthen the social structure of the age instead upended it. From the vantage point of 1450, the new technology seemed to do nothing more than offer the existing society a faster and cheaper way to do what it was already doing. By 1550 it had become apparent that the volume of indulgences had debauched their value, creating “indulgence inflation”—further evidence that abundance can be harder for a society to deal with than scarcity. Similarly, the spread of Bibles wasn’t a case of more of the same, but rather of more is different—the number of Bibles produced increased the range of Bibles produced, with cheap Bibles translated into local languages undermining the interpretative monopoly of the clergy, since churchgoers could now hear what the Bible said in their own language, and literate citizens could read it for themselves, with no priest anywhere near. By the middle of the century, Luther’s Protestant Reformation had taken hold, and the Church’s role as the pan-European economic, cultural, intellectual, and religious force was ending.”

Clay Shirky (1964) American technology writer

Cognitive Surplus : Creativity and Generosity in a Connected Age (2010)

Age, Way, Soul, Spring

“Inflation and Employment in capitalist countries, in my own view, the change is the other way around: the constraints on the pressure of demand tend to be excessive, with the result that unemployment is much greater than can be justified by the needs of resource-allocation, and the rate of economic growth is appreciably less than it could be.
The main reason for this is that the distribution of power and, ultimately, the distribution of incomes, changes in favor of labor the faster the economy grows and the nearer it is to full employment, and over a longer period it changes in favor of capital the greater the volume of unemployment. This is the real reason why the continuance of Keynesian policies after the war led to a recrudescence of long-discredited ideas that go by the name of “monetarism.” The main attraction of monetarism was not its intellectual simplicity— inflation is a matter of the money supply, period— but that it elevated the fear of inflation to the unique position which could not be justified by the experience of numerous countries who habitually suffer from it.”

Nicholas Kaldor (1908–1986) British/Hungarian economist

Nicholas Kaldor, Economics without Equilibrium (1985), p.37-38

Money, War, Fear, Way

“!-- I think everything depends on money. How much money does the administration want to put forth to do this kind of exploration. And I think the amount we're getting now is about what we're going to get in the future. I don't see that changing very much and so I think we'll take that money and use it to build a space station. Then we'll use it to make it a little better and then when money frees up of that amount, then we'll try to decide what we can do with that money then.
I don't think we're going to see a sudden jump in the budget other than inflation. It will keep going with inflation. So I don't see anything for a while. It's going to be an orderly movement and that's okay. That's the way history is. --> History has spurts and then is steady, and then maybe even backing up a step, and then forward again.”

Alan Bean (1932–2018) American astronaut and painter

An Interview with Alan Bean (1992)

Money, Way, History, Thinking

“The Grand Inquisitor explains that you have to create mysteries because otherwise the common people will be able to understand things. They have to be subordinated so you have to make things look mysterious and complicated. That's the test of the intellectual. It's also good for them: then you're an important person, talking big words which nobody can understand. Sometimes it gets kind of comical, say in post-modern discourse. Especially around Paris, it has become a comic strip, I mean it's all gibberish. But it's very inflated, a lot of television cameras, a lot of posturing. They try to decode it and see what is the actual meaning behind it, things that you could explain to an eight-year old child. There's nothing there. But these are the ways in which contemporary intellectuals, including those on the Left, create great careers for themselves, power for themselves, marginalize people, intimidate people and so on.”

Noam Chomsky (1928) american linguist, philosopher and activist

In Chomsky on Anarchism, 2005.
Quotes 2000s, 2005

People, Way, Understanding, Personality

“She [Comedy] it is who proposes the correcting of pretentiousness, of inflation, of dulness, and of the vestiges of rawness and grossness to be found among us. She is the ultimate civilizer, the polisher, a sweet cook.”

George Meredith (1828–1909) British novelist and poet of the Victorian era

Prelude. The Egoist http://www.gutenberg.org/dirs/etext99/egost11.txt (1879)

Cooking

“Capitalism in the twentieth century was dominated by finance, with the exception of that half of the century that was taken up by its world wars, the Great Depression and its Keynesian aftermath. Even before, in the nineteenth century, finance seduced industrial capitalism by offering a vision of capitalist reproduction expanded by the resources generated by financial inflation, ostensibly held in check by controls on the issue of paper money. The extensive and negative reaction of English political economy to Adam Smith’s views on usury was symptomatic of the expansion of financial markets and their growing confidence in their ability to contribute to commerce and industry. From Veblen through Keynes to Minsky, a series of critics of finance argued that economies do not operate in the benign way in which it appears in equilibrium economics. These critics can be divided into those like Veblen, Hawtrey, Kalecki, Steindl and Minsky, who took a general view of finance; those like Smith, Fisher and Breit, who saw the financial system as essentially a banking system; and those like Keynes, Kindleberger and Galbraith, who have identified the pathology of modern capitalism in its capital markets.”

Jan Toporowski (1950)

Theories of Financial Disturbance (2005), Ch. 15. Conclusion: the disturbance of economists by finance

Money, War, World, Way

“Inflation itself proceeds at a speed faster than the measured speed of light.”

John Moffat book Reinventing Gravity

Source: Reinventing Gravity (2008), Chapter 6, Inflation And Variable Speed Of Light (VSL), p. 102

Light, Speed

“The President’s proposed budget for FY 2015 under the N. E. P. or the National Expenditure Program amounts to P2.606 trillion, reflecting an increase of P341.372 billion or 15.07% higher than the Fiscal Year 2014 budget. It is anchored on a real GDP projection of 7-8%, an inflation rate of 2-4%, 364-day T-Bill rate of 2-4%, and a foreign exchange rate of P42-45 to the dollar.”

Francis Escudero (1969) Filipino politician

2014, Speech: Sponsorship Speech for the FY 2015 National Budget

“The growth in money and credit has outpaced both savings and economic growth. These inflationary pressures have been concentrated in asset prices, not consumer price inflation--keeping monetary policy too easy. This increase in asset prices has fueled domestic borrowing and spending. Government policy and the increase in securitization are largely responsible for this bubble. In addition to loose monetary policies by the Federal Reserve, government-sponsored enterprises Fannie Mae and Freddie Mac have contributed to the problem. The fourfold increases in their balance sheets from 1997 to 1998 boosted new home borrowings to more than $1.5 trillion in 1998, two-thirds of which were refinances which put an extra $15,000 in the pockets of consumers on average--and reduce risk for individual institutions while increasing risk for the system as a whole.”

Ron Paul (1935) American politician and physician

CONFERENCE REPORT ON S. 900, GRAMM-LEACH-BLILEY ACT, November 8, 1999 http://www.house.gov/paul/congrec/congrec99/cr110899-glb.htm 1990s

Money, Home, Problem

“The most serious criticism of EMU is that by abandoning exchange rate adjustments it transfers to the labor market the task of adjusting for competitiveness and relative prices… losses in output and employment (and pressure on the European central bank to inflate) will predominate.”

Rudiger Dornbusch (1942–2002) German economist

Euro fantasies, 1996

Loss

“The time has come for a wholly new approach to economic policy in Britain. The overriding need is for a long-term stabilisation programme to defeat inflation, recreate business confidence and provide a favourable climate for economic growth. At the head of such a programme must lie a firm commitment to a steady and gradual reduction in the rate of growth of the money supply, until it is consistent with our best guess at a potentially sustainable rate of economic growth. Only in this way can inflation be wrung out of the system. But this alone is not enough…An equally important part of a long term stabilisation plan has to be a reduction in the present Budget deficit…Indeed, something akin…to the old balanced Budget discipline needs to be restored: the secret of practical economic success, as overseas experience confirms, is the acceptance of known rules. Rules rule: OK?”

Nigel Lawson (1932) British Conservative politician and journalist

The Times (14 September 1978), p. 16.

Money, Lie, Secret, Way

“If in later life she has mastered her hunger drive by ego control, she may assume that she can control her fate herself. But that ego may in fact be very weak, because it has been built by cutting herself off from the mainstream of life through severe dieting. It is built on negative rather than positive need. In a real life crisis, such an ego may fail to operate because she does not know consciously what her own needs are. […] An ego which sets itself up against Fate is attempting to usurp the power of the Self; it swings from light to dark, from inflation to depression. Only when her ego is firmly rooted in her own feminine feeling can a woman be released from her compulsive behavior.”

Marion Woodman (1928–2018) Canadian writer

Source: The Owl Was a Baker's Daughter (1980), p. 33

Life, Hunger, Fate, Behavior

“In most Western economies, the general relationship is not in fact between the rate of inflation and the level of unemployment, but between the rate of change of inflation and the rate of change of unemployment.”

Paul Ormerod book The Death of Economics

Part II, Chapter 6, Unemployment and Inflation, p. 130
The Death of Economics (1994)

Change

“Today, thousands of farm workers live under savage conditions — beneath trees and amid garbage and human excrement — near tomato fields in San Diego County, tomato fields which use the most modern farm technology.
Vicious rats gnaw on them as they sleep. They walk miles to buy food at inflated prices. And they carry in water from irrigation pumps.”

Cesar Chavez (1927–1993) American farm worker, labor leader, and civil rights activist

What the Future Holds (1984)

Food, Sleep, Tree, Water

“It is indeed true that the reduction of inflation came at a big price—that Volcker's tightening, for instance, succeeded in lowering inflation only in the wake of a severe recession. But this possibility was, first of all, one concerning which monetarists were perfectly aware: they understood the danger that, once inflation, and accelerating inflation especially, came to be anticipated by the public, putting the breaks on money growth would result in prices and wages continuing for some time to rise beyond their new, less-rapidly rising equilibrium values, with a consequent rise in unemployment.”

George Selgin (1957) economist

In Defense of Monetarism (2008)

Money, Time

“Cats have no sense of humor, they have terribly inflated egos, and they are very touchy.”

Robert A. Heinlein (1907–1988) American science fiction author

Source: The Door Into Summer (1957), Chapter 2

Cats, Sense

“The appropriate emotion is shame — shame at our own dependency, in this case, on the underpaid labor of others. When someone works for less pay than she can live on — when, for example, she goes hungry so that you can eat more cheaply and conveniently — then she has made a great sacrifice for you, she has made you a gift of some part of her abilities, her health, and her life. The "working poor," as they are approvingly termed, are in fact the major philanthropists of our society. They neglect their own children so that the children of others will be cared for; they live in substandard housing so that other homes will be shiny and perfect; they endure privation so that inflation will be low and stock prices high. To be a member of the working poor is to be an anonymous donor, a nameless benefactor, to everyone else.”

Barbara Ehrenreich (1941) American writer and journalist

Evaluation (p. 221)
Nickel and Dimed: On (Not) Getting by in America (2001)

Life, Children, Health, Home

“In the new money system we abolish interest and inflation, thereby reducing the prices of all goods and services as well as taxes by about 40%.”

Margrit Kennedy (1939–2013) German architect

Source: Interest and Inflation Free Money (1995), Chapter Three, Who Would Profit From a New Monetary System?, p. 66

Money

“There is no doubt, and in this I agree with Milton Friedman, that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy. I am not only against inflation but I am also against deflation! So, once again, a badly programmed monetary policy prolonged the depression! So, once again, a badly programmed monetary policy prolonged the depression. One consequence of this policy was, of course, the fact that confidence was destroyed.”

Friedrich Hayek (1899–1992) Austrian and British economist and Nobel Prize for Economics laureate

1960s–1970s, A Conversation with Professor Friedrich A. Hayek (1979)

Confidence

“The state of emergency had negative effects on our democracy and economy, because of the state of emergency, the number of foreign investments to our country has been reduced and inflation, interest rates and the current deficit are higher now. The main reason is because Turkey is getting far away from democracy.”

Akif Hamzaçebi

As quoted in Turkey approves controversial security law http://www.middleeasteye.net/news/turkey-approves-controversial-security-law-1364915043 (24 July 2018), Middle East Eye.

Democracy, Country

“The next most pressing problem was the better ordering of the finances of the Nation. Our Government was costing almost more than it was worth. It had more people on the pay roll than were necessary, all of which made expenses too much and taxes too high. This inflated condition contributed to the depression which began in 1920. But the Government expenditures have been almost cut in two, taxes have been twice reduced, and the incoming Congress will provide further reductions. Deflation has run its course and an era of business activity and general prosperity, exceeding anything ever before experienced in this country and fairly well distributed among all our people, is already at hand.”

Calvin Coolidge (1872–1933) American politician, 30th president of the United States (in office from 1923 to 1929)

1920s, Toleration and Liberalism (1925)

People, Business, Problem, Country

“(Insanity) is not hubris, not pride; it is inflation of the ego to its ultimate — confusion between him who worships and that which is worshipped. Man has not eaten God; God has eaten man.”

Philip K. Dick book The Man in the High Castle

The Man in the High Castle (1962)

God

“There are many reasons there was higher inflation in the 1970s. But that is a complicated story that deals with much more than tax policies.”

Lawrence Klein (1920–2013) American economist

"Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)

“Deficit financing proper is rather the process whereby a Government spends more money that it withdraws from the economy by taxation, borrowing, running down reserves, etc.; thereby causing in most circumstances, and very acutely in ours, monetary inflation and severe pressure on the balance of payments.”

John James Cowperthwaite (1915–2006) British colonial administrator

March 29, 1967, page 249.
Official Report of Proceedings of the Hong Kong Legislative Council

Money

“Unless we plan our resources purposefully, unless we are prepared to accept the disciplines that are necessary, we shall not be able to meet the challenge of the Communist world. As the years go by, and the people see us languishing behind, trying to prevent the evils of inflation by industrial stagnation, trying all the time to catch up with things because we have not acted soon enough—when they see the Communist world, planned, organised, publicly-owned and flaunting its achievements to the rest of the world—they will come to be educated by what they will experience. They will realise that Western democracy is falling behind in the race because it is not prepared to read intelligently the lessons of the twentieth century.”

Aneurin Bevan (1897–1960) Welsh politician

Speech http://hansard.millbanksystems.com/commons/1959/nov/03/debate-on-the-address in the House of Commons (3 November 1959) 1950s

People, World, Education, Democracy

“The main key to the economics of the postwar world is a simple truism — that the rate of accumulation is equal to the rate of production less the rate of consumption. This is the "Bathtub Theorem." Production may be likened to the flow of water from the faucet, consumption to the flow down the drain. The difference between these two flows is the rate at which the water in the bathtub - the total stockpile of all goods - is accumulating.
War drains the economic bathtub in a great waste of consumption. The first problem of reconstruction is to rebuild the stockpile. It can be rebuilt only by widening the gap between production and consumption, or, in the case of a single country, by importing more than is exported. It is difficult for a ravaged country to increase either its production or its net imports. Unless it can obtain outside help, therefore, it must suffer a drastic restriction of consumption. Frequently the only way consumption can be restricted is by inflation. Here, therefore, is the key to the most fundamental problems of reconstruction.”

Kenneth E. Boulding (1910–1993) British-American economist

Preface
1940s, The Economics of Peace, 1945

War, World, Way, Problem

“Whether the universe is really a paying concern, or whether it is an inflated bubble that must burst sooner or later, this is another matter. If people were to demand cash payment in irrefragable certainty for everything that they have taken hitherto as paper money on the credit of the bank of public opinion, is there money enough behind it all to stand so great a drain even on so great a reserve?”

Samuel Butler (1835–1902) novelist

Ramblings In Cheapside (1890)

Money, People, Universe

“Inflation is unjust and Deflation is inexpedient. Of the two perhaps Deflation is, if we rule out exaggerated inflations such as that of Germany, the worse; because it is worse, in an impoverished world, to provoke unemployment than to disappoint the rentier. But it is not necessary that we should weigh one evil against the other. It is easier to agree that both are evils to be shunned.”

John Maynard Keynes book Essays in Persuasion

Essays in Persuasion (1931), Social Consequences of Changes in The Value of Money (1923)

World, Disappointment, Evil

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

Milton Friedman (1912–2006) American economist, statistician, and writer

The Counter-Revolution in Monetary Theory (1970) <!-- ([[w:Institute of Economic Affairs
Context: Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output. … A steady rate of monetary growth at a moderate level can provide a framework under which a country can have little inflation and much growth. It will not produce perfect stability; it will not produce heaven on earth; but it can make an important contribution to a stable economic society.

Money, Sense

Quotes about inflation page 2

Quotes about inflation
page 2