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January 1979

Comments on "Inflation—Causes, Cures and Placebos"

by Charles Webster

Charles Webster notes that Beryl M. Sprinkel sees as a primary cause of the current inflation the large and growing federal deficits that have made the job of limiting the growth of the money supply more difficult. Webster notes that while few would disagree with this, agreement with some of the implications Sprinkel draws from this would be substantially less than unanimous. Webster knows of no Keynesian economists who consider deficits a “boon to mankind.” Rather, he notes they see fiscal policy and its implied surplus or deficit as potential policy tools that may either be used or abused.