inflation. There have been numerous theories on how to defeat inflation and even some theories on whether, or not, it should be defeated at all. Some say that inflation is not only expected, but also often, needed. Economists believe that in order for the economy to expand and grow, there has to be some level of inflation. Therefore, the opposite holds true as well. If you want to lower inflation, you have to accept a semi-standard economy. They call this tradeoff the Phillips Curve. The Phillips Curve is thought to be the “proper” way of balancing economic growth and inflation. For this reason the Federal Reserve is always looking for the perfect equilibrium at which we can maximize our economic growth while keeping inflation as minimal as possible. They do this by increasing and decreasing interest rates. Although, Economists and the Federal Reserve abide by the Phillips Curve as a general rule for not letting inflation get out of hand, it has been proven many times in the past that it is possible to have a very healthy and prosperous economy without raising inflation at all. There are even examples of inflation declining while the economy booms. As Steve Forbes, of Forbes magazine, said, “Prosperity is not the fueler of inflation.” For example, in the 1980's, when the economy was at a major high, inflation fell from 13% all the way to 4%. That’s an incredible drop for such a short period of time. Another good demonstration of a healthy economy with low secondary effects of inflation is time period between th

Some topics in this essay:
Phillips Curve, Price Index, Price Indexes, Federal Reserve, Federal Reserves, Inflation Inflation, Forbes Forbes, Clinton Administrations, Vietnam Wars, phillips curve, consumer price, Federal Reserve’s, price index, consumer price indexes, federal reserve, price indexes, raising rates, inflation rate, typical budget, economic growth, economists believe, consumer price index,