The black market was a way of getting around government controls. It was a way of enabling the free market to work. It was a way of opening up, enabling people.
Milton FriedmanRead
When people begin anticipating inflation, it doesn't do you any good anymore, because any benefit of inflation comes from the fact that you do better than you thought you were going to do.
Interpretation
What this quote means
Anticipating inflation can negate its benefits, as expectations influence outcomes.
This quote by Paul A. Volcker highlights the complex relationship between inflation and people's expectations. When individuals or markets begin to anticipate inflation, the original advantages of inflation—like improved performance beyond initial expectations—can be diminished. Essentially, if everyone expects inflation, it can lead to a self-fulfilling prophecy that undermines the positive aspects of economic growth related to inflation.
Themes
InflationExpectationsEconomicsPerformanceMarket
In practice
Example use cases
In a seminar about economic forecasting, this quote can shed light on the impact of consumer expectations.
Similar quotes
Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion - the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals - the technique of the marketplace.
Milton FriedmanRead
War can really cause no economic boom, at least not directly, since an increase in wealth never does result from destruction of goods.
Ludwig Von MisesRead
Governments must commit to sound economic and financial policies. This is how we ensure reform in the euro area - and our independence.
Mario DraghiRead
The powers of financial capitalism had a far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences.
Carroll QuigleyRead
I'm an entrepreneur trying to let the American people know that it's not immigrants that are causing economic problems, it is the fact that our economy is advancing in ways that is making human labor less and less essential.
Andrew YangRead