A Primer on Inflation.

Focuses on inflation and its impact on an economy. Definition of inflation, noting it occurs during economic periods where prices are rising; Economic theory related to the measures that can be employed to fight inflation, including wage reductions and interest rate changes; Impact of borrowing and lending from banks on the money supply; Application of economic policy through the Federal Reserve Bank system and the tools available to the Federal Reserve; Reserve requirements for banks as a method to fighting inflation; Interest-rate changes as a method to curbing inflation; Discussion of open market sales of government securities as a method to fighting inflation; How banks prefer inflation be fought; Effects of inflation-fighting measures on the small borrower; Recommendation that federal budgets be balanced and federal spending on social welfare increase.