Question

Summary on Article on " Goods inflation, asset inflation, and the greatest peacetime inflation in the US" by Brendan Brown

Identify the following aspects of the article after reading it:

1. Summary (100-200 words)

2. Purpose of the research

3. Theory/Conceptual framework used

4. Population/focus of study

5. Methods

6. Key Results or Key findings

7. Key conclusions

Answer 1

" Goods inflation, asset inflation, and the greatest peacetime inflation in the US" by Brendan Brown

Summary:

The main aim of this article was to check the interdependence of the price inflation and goods inflation in the economy and also elaborate and explain the monetary disorders, goods inflation and asset inflation.Since the establishment of the Federal reserves in the year 1914 the economy has experienced various successive monetary turmoil ever since. These turmoils are a result of various flaws in the US financial system as well as the Gold standards.All these fluctuations that the economy has experienced has one thing in common;Inflation. There has been a mix of goods and services inflation over the period of time.In this particular paper is to examine the relationship between goods inflation and services inflation depending upon a certain financial fluctuation in the economy. The hypothesis is tested on a peacetime inflation from 1960s to end of 1980s.The paper is mostly based on theoretical evidences that has been presented which have established the relationship between the two kinds of inflation also how the Asset inflation has always been so variable throughout the years.Addressing the issue of Hedonic price accounting given by Mueller in the year 2005 explain how the prices are adjusted so aggressively in order to increase the quality improvements. Then the next target is the Gold standards and how all these factor together makes the diagnosis of the monetary disorder difficult to measure. Another reason why it is hard to identify the monetary turmoil is that there is "no close fit over short or medium period of time between monetary base and the path of inflation"

Purpose of the research:

The purpose of the research is to find out the relationship between goods and service inflation from 1960s to 1980s.

Theory/conceptual framework:

The conceptual framework presented in this paper is based on identifying the issues that related to monetary turmoil and difficulty in identifying the same issue.

Population/focus of the study:

The focus of the study has been the inflation boom period of 1960s-1980s. This period is also called the Great Inflation.

Key results/findings:

A key finding of this paper was that there is a need for a new solution to all the US monetary problems. This system requires the US system to make the high powered money the important pivotal aspect of the financial system.

conclusion:

In conclusion we can say that the after more and more financial sector turmoils there has been various measures that has been taken after the collapse of gold standards. Which were the dollar-gold exchange standard and the Bretton woods system. Over 2% of the inflation standards have been established in such a manner that the problem of asset inflation will arise again and again and in most cases more violently than before.Goods inflation on the other hand has been muted but it cannot be avoided completely.