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Controlling Inflation

In: Economics for a Civilized Society

Author

Listed:
  • Greg Davidson

    (National Aeronautics and Space Administration)

  • Paul Davidson

    (University of Tennessee)

Abstract

The analysis in Chapter 6 has brought us to the root of the inflation — unemployment dilemma facing an entrepreneurial economy possessing an accommodating banking system and a government responsible for creating the demand necessary to ensure full employment. A banking system which can provide finance for managers as they expand output, is also capable of providing finance for managers to meet inflating wage and other raw material costs. How does an economy, assured of full employment and a banking system ready to finance rising production costs, prevent managers and workers from raising their prices in their own self-interest?

Suggested Citation

  • Greg Davidson & Paul Davidson, 1988. "Controlling Inflation," Palgrave Macmillan Books, in: Economics for a Civilized Society, chapter 7, pages 134-157, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-19244-1_7
    DOI: 10.1007/978-1-349-19244-1_7
    as

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