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Social and Economic Growth Without Inflation

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  • Gerhard Colm

    (George Washington University)

Abstract

There is no clear correlation between the rate of economic growth and price developments. Very rapid ex pansion is usually associated with price rise, a business slump with price drops. In the wide range between these extremes, growth may be associated with rising, stable, or falling prices. This is explained by the great variety of factors influencing prices, often working in opposite directions. Since there are multiple causes of price rises, there are also several policies which should be combined to combat price rises. They in clude: positive policies designed to increase productivity and to overcome obstacles to greater production; more effective credit policies to combat demand inflation; and arrangements designed to articulate the public interest in price and wage de velopments as a means to restrain cost increases.

Suggested Citation

  • Gerhard Colm, 1959. "Social and Economic Growth Without Inflation," The ANNALS of the American Academy of Political and Social Science, , vol. 326(1), pages 25-31, November.
    • Handle: RePEc:sae:anname:v:326:y:1959:i:1:p:25-31
    DOI: 10.1177/000271625932600104
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