Alan Ruskin Inflation Quotations

The problem with inflation targeting is that it carries with it a risk of less flexibility at times, and that could be problematical. But it also makes policy less of a black box, so policy is likely to be more transparent.

My concern is that what's happened here is that inflation is higher than the Fed anticipated. On top of that, the kind of tightening already imposed by the markets, in terms of lower equities and higher bond yields, is setting up weaker growth in 2005.

I think the only clear sign that would really tell you that inflation should be rising at this point is, of course, the rise in hourly earnings, ... But at this stage, from what we've seen, corporations seem to be taking it in terms of lower profit margins and, therefore, not necessarily pushing up prices.

I think (Fed officials have) found that they're in a lucky position where the inflation numbers are good enough that it's bought them some time (to postpone rate hikes),

we still don't have any clear signals that inflation is on the way up.

The data should tend to encourage views that the Fed is correct and that inflation looks to be contained.

Up until recently, oil price hikes have offset disinflation. This time around, we're in a situation where inflation is starting to peek its head above the parapet, and policy makers will see it more as an inflation threat. That's problematic -- if they have to start reacting to higher inflation pressures by raising rates, that does slow the economy down.

It's certainly a good sign as far as future pipeline inflation is concerned, ... The goods side of the inflation equation is very encouraging.