The discussion in the conference room moved on to Spain, the United Kingdom, and China, where, during the previous week, the central bank had raised interest rates in an attempt to slow inflation.
Economic growth is expected to slow, inflation is in double digits and oil production is falling.
But the only way we achieve that is if we reform the health care system to slow health care inflation.
The deep downturns of the early 1980s were largely engineered by the Federal Reserve, which boosted short-term interest rates to near 20% to slow down galloping inflation.
ECONOMIST: Bucking up this recovery is harder than it was in the past
This has the perverse effect of giving higher real (inflation-adjusted) interest rates to slow-growing, low-inflation countries, and lower real rates to booming economies with rapid inflation precisely the opposite of what a sound monetary authority would prescribe.
The RBI added that it expects inflation to slow further in the coming months.
This is also consistent with our forecast that inflation will slow over the next year.
FORBES: Goldman Sachs Sees Signs Of Disinflation: Bernanke's Cue For QE3?
With fewer people trying to buy up the scarce resources of society the rate of inflation will slow.
In China the government's effort to tamp down inflation will slow construction growth by restricting bank loans as well.
If the star's outer layers could be mixed into the core, that would slow the process of inflation down.
ECONOMIST: Is it time for a new approach to finding extraterrestrials?
The widespread skepticism is hiding a global Goldilocks economy one that grows not too fast, not too slow and has little inflation.
Consumer spending would only grow 1.2% in Q4, compared with a baseline estimate of 2.1%, while CPI inflation would slow to 0.4%.
FORBES: Double-Dip Recession 20% To 25% Likely If Fiscal Cliff Hits, S&P Warns
As dismal employment data threw the U.S. stock market for a loop on Friday, Europe worried about rising inflation and slow economic growth.
It suggests that higher that higher inflation and slow wage growth are squeezing household incomes and that this is being felt in the UK's shops.
Inflation would slow these economies and slow already tepid world growth.
For a government that is likely to call national elections later this year, slow growth, higher inflation and maybe even higher interest rates are likely to prove an awkward mix.
With its combination of slow growth and fast inflation, stagflation presents the monetary authority with a dreadful dilemma: lower rates and let inflation run away, or raise them and throw even more people out of work.
While the report showed an unattractive mix of slow growth and rising inflation -- stagflation, is one way to look at it -- it didn't indicate a crisis either for employment nor for price stability, the Fed's two concerns.
The dot-com bust that began in mid-2000 had done nothing to slow down house-price inflation.
For example, the People's Bank of China's bank reserve requirements are at a record high at 21%, and with inflation starting to slow in the past few months, Beijing could be more comfortable about easing monetary policy.
There is a definite balance between those who are buying into the Goldilocks scenario of an economic recovery with low inflation and those who are worried about the slow pace of economic recovery and the threat of higher interest rates and inflation.
Such action, if effective, would also slow the economy and might cause inflation to undershoot its target.
It becomes an issue only if money creation is too rapid, threatening a buildup of inflation, or too slow, threaten recession.
FORBES: 'Quantitative Easing' Is A Toxic Phrase for a Routine Policy
Since the quarter-point rise may not be sufficient to slow the economy enough to check inflation, interest rates may need to rise further.
They conclude that, although house-price inflation is likely to slow, prices will not actually fall, so there is no need for consumers to retrench.
Ludwig: The perception is that we have a very tight labor market, and therefore we have to take all kinds of measures to slow down the economy and avoid inflation.
Because all member states share the same nominal interest rate, slow-growing economies with lower inflation, such as Germany and Italy, have higher real interest rates than fast growers, such as Spain and Greece.
Where once the Duma the lower house of parliament furiously tried to impeach the president, and the Kremlin sacked prime ministers on a whim, the worries now are about missed growth and inflation targets or the slow progress of useful bits of legislation.
Inflation is beginning to slow.
FORBES: Goldman Sachs Sees Signs Of Disinflation: Bernanke's Cue For QE3?
应用推荐