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She argued inflation is not an immediate concern, but that the nation's unemployment problem posed a persistent problem that needs to be addressed by policymakers.
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Many argue inflation is exactly what Europe needs.
As John O'Sullivan, our British economics editor, argues, inflation is likely to fall in 2013 and "as real incomes revive, so will spending".
Friedman also later argued that inflation and unemployment could rise in tandem something Keynesians saw as conceptually impossible, because they believed that higher inflation caused lower unemployment, and vice versa, and it was government's job to strike the perfect balance between these two conflicting forces.
Friedman also later argued that inflation and unemployment could rise in tandem — something Keynesians saw as conceptually impossible, because they believed that higher inflation caused lower unemployment, and vice versa, and it was government's job to strike the perfect balance between these two conflicting forces.
Mr Phelps argued that inflation will not settle until unemployment rises to its "natural rate", leaving some workers mouldering on the shelf.
Mr. Sentance argued that inflation had proved resilient in the aftermath of Britain's deep recession, casting doubt on the bank's prediction that spare capacity would be enough to reduce inflation.
The Bank argued that inflation was on course to undershoot the government-set target of 2% and so the Bank would start creating money to buy up assets, primarily British government bonds, known as gilts.
Naturally, the Federal Reserve has argued that inflation is not a risk, saying that there is enough excess capacity to absorb the government's massive injections.
Defenders of the Fed argued that inflation rates are too weak to worry about at the moment.
Mark Carney, the governor of the Bank of Canada, has argued that inflation-targeting can foster financial instability.
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