No Inflation or Moderate Inflation?
Forbes Media chairman and co-author of "Inflation" Steve Forbes presented his argument that no inflation is preferable to moderate inflation as other economists have suggested. He was interviewed by New York Times economics reporter Jeanna Smialek.
Description
Forbes Media chairman and co-author of "Inflation" Steve Forbes presented his argument that no inflation is preferable to moderate inflation as other economists have suggested. He was interviewed by New York Times economics reporter Jeanna Smialek.
Bell Ringer Assignment
- Based on the clip, what was the average rate of inflation during Alan Greenspan's tenure as Chair of the Federal Reserve (1987-2006)?
- What does Steve Forbes mean when he says "you want flation?"
- According to Forbes, why may prices still rise even if inflation is not present? What examples does he provide?
- Based on the clip, what problem exists with "price indexes?"
- According to Jeanna Smialek, what is the Federal Reserve's "inflation target?"
- Why does Forbes disagree with the notion that a moderate amount of inflation is like "grease on gears of the economy?" What examples does he provide?
- How does Forbes describe the purpose of money? Based on the clip, what are the effects of manipulating its value?
Additional Resources
- Bell Ringer: Ben Bernanke on Monetary Policy
- Bell Ringer: The Impact of Supply and Demand on Prices
- Bell Ringer: Consumer Price Index, Inflation, and the Standard of Living in the early 1900
- Lesson Plan: Goals and Tools of the Federal Reserve
- Lesson Plan: The Great Depression
- Lesson Plan: Consumer Price Index and Inflation
Participants
Vocabulary
- Alan Greenspan
- Bretton Woods Agreement
- Consumer Price Index
- Deflation
- Demand
- Devaluation
- Federal Reserve
- Gold Standard
- Growth Rate
- Hyperinflation
- Inflation
- Median Household Income
- Medium Of Exchange
- Microchip
- Nominal Income
- Paul Volcker
- Price Stability
- Prosperity
- Speculation
- Store Of Value
- Supply
- Wage