Book contents and overview
The book covers everything from the basics of how inflation is defined and measured through to the impact of inflation and its winners and losers. It highlights the difficulty in calculating inflation and that conventional measures (such as CPI in the UK) often underestimate it for a number of reasons. It also examines deflation and why it is regarded as a problem by economists.
The book examines the history of world inflation. It looks at the causes of inflation and shows that they are many and complex. The book reveals a new model of inflation – Inflationary Wave Theory. It proposes that long-term inflation is created by population growth and competition for resources. Price increases depict a wave-like pattern over the centuries due to effects of man exploiting the inflation trend to such a point that prices eventually consolidate over a long period. The world is about to enter this stage of near-zero inflation.
The book examines how this transition might take place and the conditions that need to be fulfilled. It is likely to be accompanied by some form of deflationary shock. Investing over the coming decades will therefore be difficult and the book discusses the implications of it for future wealth management.
PART I: INFLATION FACT AND FICTION
1 What is inflation?
2 Inflation and the money supply theory
3 Other theories about inflation
4 Deflation and why it is regarded as a problem
5 UK inflation measures
6 Inflation measurement issues
PART II: INFLATION PAST
7 Inflationary Wave Theory
8 World War I and learning about hyperinflation
9 The 1930s depression and the deflation bogeyman
10 World War II, debts and the low inflation world
11 The 1970s inflation crisis and fiat currencies
PART III: INFLATION PRESENT
12 The Great Moderation and the Great Recession
13 Japan and deflation
14 Governments and inflation
15 The era of inflation targeting
16 The impact of current inflation
PART IV: DEFLATION YET TO COME
17 The big picture: a century of more stable prices
18 The transition period and near-term inflation
19 Price stability and the consolidation period
20 Managing wealth as we head towards near-zero inflation