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July 1970

Inflation and Its Cure

by Norman N. Bowsher

Prices have increased ever more rapidly since 1965, and in the past year overall prices have risen more than 5 per cent. The inflation has redistributed income and wealth and contributed to inefficiency. The Government began taking actions in mid-1968 designed to restrain inflation. Since eliminating inflation, by necessity, involves costs, a course of gradual correction has been followed with the objective of holding such costs to a tolerable level.