ERIC Number: ED180920
Record Type: RIE
Publication Date: 1980-Jan
Reference Count: 0
Inflation: The Rising Cost of Living on a Small Planet. Worldwatch Paper 34.
Global inflation should be viewed more as a sympton of social problems than as an economic disease that can be cured by monetary and fiscal policy. Social problems signaled by inflation include exploding demand, rising costs for essential commodities, stagnating productivity, and a decline in the real standard of living. Inflation is interpreted as an increase in the overall level of nominal prices in the whole economy. It is significant to note, however, that crucial determinants of well being are often more closely related to prices of particular goods and services than to changes in the general price level. Circumstances which have contributed to global inflation include rising energy prices, increased government spending, increased money supplies, and lack of wage and price controls in capitalist nations. New sources of higher prices include increasing energy and food production costs, depleted resources, and a dearth of tillable land. Governments will make progress toward controlling global inflation if they aim economic policies toward increasing supply and reducing demand, stabilizing population, encouraging conservation and recycling, changing working conditions to boost productivity, increasing opportunities for competition, and striving to provide for basic human needs in a setting of economic stability. (DB)
Descriptors: Agriculture, Cost Estimates, Costs, Depleted Resources, Developed Nations, Developing Nations, Economics, Environmental Influences, Futures (of Society), Global Approach, Government Role, Inflation (Economics), Living Standards, Monetary Systems, Social Problems, Technological Advancement
Worldwatch Institute, 1776 Massachusetts Avenue, N.W., Washington, D.C. 20036 ($2.00, quantity discounts available)
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Worldwatch Inst., Washington, DC.