Monday, October 28, 2013
In Fed and Out, Many Now Think Inflation Helps
I figured since we've been beating the dead horse of the debate over healthcare and the government shutdown we could look towards more optimistic subject matter: our nation's prosperous economy. Typically today it seems that we consider inflation as a negative because we associate the term with our struggling economy. However, according to the article, there is a concern of the Federal Reserve policy makers that inflation actually may be rising too slowly. Based on history and economic patterns, inflation has its advantages in our country's current economic conditions, especially for debtors. The article was interesting to me, though, because it contradicted this mindset that I had about how the economy works.
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I never really thought that inflation was a good thing. Then again, I never really paid that much attention to the economy and events until recently. The arguments presented in this article are convincing in showing how inflation helps the economy. Even though I always thought of it as a kind of bad thing because prices go up, inflation actually is good for those repaying debts. This was an informative read.
ReplyDeleteI thought this article was very interesting since inflation is normally always associated with a negative connotations. Economics can sometimes be confusing but I thought this article did a good job supporting both sides of the argument with facts and statistics. This article made me realize many aspects of inflation that I had never considered before.
ReplyDeleteLike Katie and Kevin, I have always associated inflation with having a negative effect on the economy. This article made me realize the ways that inflation can effect people and I now see that in many cases inflation is a good thing. I found it especially noteworthy that the Feds have worked so long to suppress inflation when many economists think it is just what our economy needs.
ReplyDeleteI have no idea what this article was saying. It really confused me because I associate inflation with increasing prices but decreasing the value of American dollars. How is this helpful when we owe billions of dollars in debt. What is the Fed, the Federal Reserve? It made a point for inflation being helpful in the U.S. but what about when people are not in the U.S.
ReplyDeleteAlthough inflation usually has a very negative connotation, I thought that this article did a really good job of presenting a situation in which inflation could be beneficial. I think that the article successfully told two different opinions about inflation in a non-biased way. My take away from this article is that a little inflation can be good.
ReplyDeleteWhen I started to read the article I kept thinking how raising inflation could only be bad for the economy, but I was convinced by the end that maybe it's not always a negative thing. It definitely is a risk because sometimes it doesn't have the intended result and it doesn't necessarily help everyone. If it will help repay debts, however, maybe a little couldn't hurt.
ReplyDeleteThis was a very eye opening article for me. I've always assumed inflation was very bad. I never knew that it could be potentially beneficial for so many people. I knew from economics that it could help people, but I never knew the specific people and reasons. I'm still not convinced it is the right idea. Who knows next year though. Maybe.
ReplyDeleteVery interesting. I admit that I've never had a very concrete understanding of the economic system, and always thought that inflation was automatically bad. But it seems like it may be good news for the country, and hopefully it is.
ReplyDeleteLike everyone else, I always thought of inflation negatively. But this article has opened my eyes in a way. I never realized the positive impact inflation has on our economy. But like Christina said, many economists believe that inflation could be beneficial to our economy. And at this point, I would be open to anything that could fix it.
ReplyDeleteThis article was fascinating considering I, along with many Americans, have only a pretty basic idea about how our economic system works. I always considered inflation as something bad that should be avoided so this article definitely allowed me to view things in a different light.
ReplyDeleteInteresting article, but in order for me to fully understand the point being made, i greatly would have appreciated some additional numerical proof of principle.
ReplyDeleteWhen I read the title I initially thought that this was going to be another spin on reality like with Cruz. I was surprised to learn that inflation can actually be good. This article really helped me open my eyes to see the other side. I liked how the author supported inflation being a good thing because it actually convinced me that inflation is good. Just like everyone else, I initially thought of inflation as bad, but I can see how it is good now.
ReplyDeleteThis article was very interesting and gave me a new perspective on inflation. Hopefully this could be beneficial to our economy, only time can tell.
ReplyDeleteI have never heard of an economist that wants inflation. This article was a very interesting read. This article did not change me to the other side as I still believe that inflation is a bad thing.
ReplyDelete