Controlled inflation?
Sir: You were good enough, some Months ago, to print two or three letfr's of mine which argued that inflation
and deflation can be controlled. at Will be varying the supply of money. It , Was fascinating to watch the way in Which this was spread in concentric ripples throughout the country by Means of the press and the BBC. Now, apparently, it is even lapping the feet of Mr Heath and Mr Barber.
I now have to raise another question. What's wrong with a bit of inflation?
Can you visualise a state of affairs in Which everybody goes toiling on, year after year, at the same old job, at the same old wages, with nary a price rise in sight? The vision is so apocalyptically boring that I for one, would be ,haPPy to see the entire country sink oeneath the waves, without a ray of hoPe for the future. But inflation is a tonic. You can expect, and get, a rise in ,salary every year. This is something to ,look forward to. You can raise a bank loan and buy a new car. You can have strikes, and power cuts, and win or Ic'se money on a Stock Exchange that goes up and down to one's heart's Content. You can sell your house at a Profit, and suddenly find there are no trains. This is life as we like to live it.
The serious point I would like to rake, sir, is that in inflationary periods
the goods and services are exchanged Much faster. This is another way of saYing that the same money is used over and again in any given period. And isn't that a good thing? I would recommend a controlled inflation of about 10 per cent a year.
SParfold House, Peaslake, Surrey.
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