While some investors may be worried about slower growing emerging markets, King points out that many developing countries have successfully
stopped inflation from getting out of control.
On the other hand, the material expanded far faster than it decayed, so even though decay might
stop inflation in certain regions, runaway growth would continue in others.
When the Fed has raised rates to
stop inflation as in 1982, it has wanted to slow the economy way down.
At this point, reducing the money supply — as opposed to
stopping the inflation of the money supply, which would be beneficial as it would prevent new mal - investment from being added to the pile — would exacerbate the pain for no good reason.
After the economy started growing for a while — and considered out of recession — the Federal Reserve raised interest rates to
stop inflation.
Our only job is to
stop inflation.»
To
stop the inflation that was distorting nearly all economies in the mid-1970s, monetarists had argued that it was necessary to cut budget deficits.
Only once, in the early 1980s under President Reagan and Chairman Paul Volcker, has the Fed managed monetary policy to
stop inflation.
Unfortunately, there is almost no way to
stop inflation.
High interest rates aim to
stop this inflation.