Instruction
Write an essay on one of the questions listed below. The essay should be no more than one-thousand words excluding references and footnotes. Please format reference according to the Chicago Manual of Style. Refrain from paraphrasing or quoting others.
Your paper will be graded on originality of ideas, clarity of theoretical arguments, strength of empirical evidence, references to seminal papers, references to recent papers, quality of writing and coherence of thought.
Essay Question
Imagine a system where wages are perfectly indexed to inflation, so that they rise with inflation. What are the costs of inflation in such a system? Explain what the following passage means.
“It would be a serious blunder to neglect the fact that inflation also generates forces which tend toward capital consumption. One of its consequences is that is falsifies economic calculation and accounting”
_ Mises, Human Action, page 549.
Required Readings
White (2014), Mises (1963) Chapter 1, 3, 6, Lucas (1980) p1005-1014, Lucas (1996) p661-682, Friedman (2005) p145-150
Audio
Allan Meltzer on “Inflation” http://www.econtalk.org/archives/2009/02/meltzer_on_infl.html
Video
Milton Friedman on “How to cure Inflation” https://www.youtube.com/watch?v=jE7zxo61Xc8
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|