Some Neglected Implications of Secular Inflation
Under secular inflation, the annual rate of price increase is highly irregular. It may be 10 per cent in one year, 5 per cent in the next. There may be frequent breaks, in the form of periods of stability, or even occasional moderate declines such as occurred in the United States in 1949. These declines, however, do not cancel out the increases which preceded them, and are themselves cancelled out by the increases which follow them in the course of secular inflation.