Inflation & Deflation: The Issue Term Paper

Also, and probably most importantly, the Reserve should constantly supervise and regulate the monetary system, assuring correspondence between the amount of money in coins and bills on the market and their coverage in gold and in the total quantity of goods and services produced. The economic practice has concluded that a common and rather successful technique in diminishing the negative effects of inflation is to deliberately induce deflation and vice-versa.

However, applying these techniques into the economic and social system raises several difficulties for the Federal Reserve. These difficulties generally reside in economic and social factors. The economic factor is represented by the continuously changing and evolving production technologies, increasing demands, cost and revenues which are almost impossible to foresee or control. Moreover, the social factor of the Federal Reserve's difficulties implies the mistrust the large public has towards the organization. Along the years, the Reserve was severely criticized for the content and nature of their acts and decisions, and also for the fact that most of their decisions were taken behind closed doors, regardless of the public's opinion and in secrecy.

Bibliography

Lipsey, Richard G., Chrystal, Alec K., Possitive Economy, Chapter 10: Inflation, Published by Weidenfeld & Nicolson...

...

colson in September 1989
Yam, Joseph, Deflation (1): Causes, Economic Forum, Hong Kong Monetary Authority, November 14, 2002, http://www.tdctrade.com/econforum/hkma/hkma021102.htm, last accessed on November 24, 2006

Barol, David, Effects of deflation on stock market performance, Physician's News Digest, June 1999, http://www.physiciansnews.com/finance/699.html, last accessed on November 24, 2006

Inflation Data, What is Deflation, 2004

http://inflationdata.com/Inflation/Articles/Deflation.asp, last accessed on November 24, 2006

Wikipedia, The Free Online Encyclopedia, Deflation (Economics), November 19, 2006 http://en.wikipedia.org/wiki/Deflation, last accessed on November 24, 2006

Wikipedia, The Free Online Encyclopedia, Federal Reserve System, November 24, 2006, http://en.wikipedia.org/wiki/Federal_reserve,last accessed on November 24, 2006

Wikipedia, The Free Online Encyclopedia, Deflation (Economics), November 19, 2006

Yam, Joseph, Deflation (1): Causes, Economic Forum, Hong Kong Monetary Authority, November 14, 2002

Barol, David, Effects of deflation on stock market performance, Physician's News Digest, June 1999

Inflation Data, What is Deflation, 2004

Wikipedia, The Free Online Encyclopedia, Federal Reserve System, November 24, 2006

Sources Used in Documents:

Bibliography

Lipsey, Richard G., Chrystal, Alec K., Possitive Economy, Chapter 10: Inflation, Published by Weidenfeld & Nicolson in September 1989

Yam, Joseph, Deflation (1): Causes, Economic Forum, Hong Kong Monetary Authority, November 14, 2002, http://www.tdctrade.com/econforum/hkma/hkma021102.htm, last accessed on November 24, 2006

Barol, David, Effects of deflation on stock market performance, Physician's News Digest, June 1999, http://www.physiciansnews.com/finance/699.html, last accessed on November 24, 2006

Inflation Data, What is Deflation, 2004
http://inflationdata.com/Inflation/Articles/Deflation.asp, last accessed on November 24, 2006
Wikipedia, The Free Online Encyclopedia, Deflation (Economics), November 19, 2006 http://en.wikipedia.org/wiki/Deflation, last accessed on November 24, 2006
Wikipedia, The Free Online Encyclopedia, Federal Reserve System, November 24, 2006, http://en.wikipedia.org/wiki/Federal_reserve,last accessed on November 24, 2006


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