Full Steam Ahead

For the past few years, the United States has enjoyed unprecedented economic growth. Warnings that inflation would kick in if the economy grew faster than 2.5 to 3 percent have proven wrong. The theory of maximum sustainable capacity has been shattered. Jobs have been created?despite large corporations' restructuring and downsizing?by an incredible surge in the growth of small companies, increasingly fu eled by the Internet and cheap capital. Un employment remains near historic lows, and much of the country has grown wealthier. My September/October 1994 article in these pages, Inflation Overkill, proposed that the U.S. economy could grow at five to six percent without incurring inflation. It also stated that inflation was not a threat

Economics · Inflation (cosmology · Keynesian economics · Macroeconomics · Monetary economics · Physics · Theoretical physics · Economic Theory and Policy