The Hayek-Keynes Debate, 1931-1971

04/23/2009 Sudha R. Shenoy

If the current level of output and employment is made to depend on inflation, a slowing down in the pace of inflation will produce recessionary symptoms. Moreover, as the economy becomes adjusted to a particular rate of inflation, the rate must itself be continuously increased if symptoms of a depression are to be avoided: to inflate is to have “a tiger by the tail”, writes Sudha R. Shenoy (1943-2008).

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