In the later world inflation will erode the principle balance in half each decade.
Perhaps the best way to determine China's impact on world inflation is to gauge whether its net impact is to increase aggregate global demand or supply.
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Since 1971, real per capital growth rates have been cut by 1 percentage point a year, even as world inflation increased 1.5 percentage points to average 4.8% per year.
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Said another way, Debt-to-Income of 100% is a may be a heavy burden in a world where inflation is 1%, but quite manageable in a world where inflation is 7%.
Inflation in the movie business has sharply outpaced real-world inflation in recent years, as returns rise in the entertainment business and as more money competes for a small number of stars.
Nominal interest rates should reflect real interest rates in a world of zero inflation, if they are to perform their function of allocating capital efficiently.
Half the investing world now thinks inflation is a looming threat.
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Lest we forget, until the great crash of 2007-8, it was widely believed that the Bank of England's performance had been world class: inflation was in check, providing the necessary price stability for businesses, households and government to make rational investment and spending decisions.
In a world where annual inflation is running at a 3% rate (actually more if you think for a moment about your rising healthcare and educational costs), there is an overwhelming demand for a security whose rate of return is a negative real (inflation-adjusted) rate of 3%.
The country is grappling with the world's highest inflation rate, officially estimated at 231 million percent.
Until 1994 Brazil had one of the world's worst inflation rates-as high as 2, 490% a year.
The political crisis has aggravated an ongoing economic meltdown that has brought Zimbabwe the world's highest inflation rate.
With much of the world increasingly worried about inflation, questions arise about what an overheating Chinese economy could do to global prices.
Meanwhile, Mr Mugabe has unilaterally reappointed Gideon Gono, the central bank governor presiding over the world's highest inflation rate, for another five years.
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After years of debate, the Fed in January 2012 followed the lead of many other central banks around the world in establishing an inflation target of 2 percent.
With world growth softening and commodity prices off their peaks, inflation in every region of the world will decline through 2012.
In a world of near-zero inflation, nominal prices are more likely to need to fall.
No nation has escaped the cost problem: the expenditure curves have outpaced inflation around the world.
Mauritius imports most of its food and energy, so rising world prices are pushing up inflation.
This was easier before 1991, when inflation around the world was higher, but has rarely been achieved since then (Hong Kong is one exception).
For February, inflation in the world's second-largest economy rose by 3.2% to a 10-month high with annual growth at 7.8% for 2012, its weakest performance for 13 years.
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Monetary malfeasance does eventually show up in goods prices, and over the past several years, citizens of the world have become reacquainted with inflation through nosebleed prices paid at the gasoline pump.
As with the run-up to those events (though on a larger scale), what we are witnessing now is simply the inflation of a world-wide bubble, which will sooner or later burst with agonizing consequences.
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At a conference in Ukraine's Black Sea resort of Yalta, International Monetary Fund Director Dominique Strauss-Kahn said the world economy remained stuck "between the ice of recession and the fire of inflation, " and added that while the world financial market crisis was largely over, its consequences would be felt for some time to come.
With inflation around the emerging world spiking, forcing China, Brazil, and others to raise rates, the threat is becoming very real in developed countries as well.
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Clearly, the most significant problem facing central bankers around the world is the recent eruption of inflation, which is sparking unrest in Asia and the Middle East.
Prior to 2008, when the world was on a spending spree, inflation was 8.3%.
Anyway, since inflation has subsided around the world, Labour should not get much of the credit.
Deflationary pressures are the norm in the developed world (except for Britain, where inflation is the issue).
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