Neither do rapid growth in government debt, declining interest rates, or rapid Increases in a central bank’s balance sheet
By Richard Vague – Monetarist theory, which came to dominate economic thinking in the 1980s and the decades that followed, holds that rapid money supply growth is the cause of inflation. The theory, however, fails an actual test of the available evidence. In our review of 47 countries, generally from 1960 forward, we found that more often than not high inflation does not follow rapid money supply growth, and in contrast to this, high inflation has occurred frequently when it has not been preceded by rapid money supply growth.
The purpose of this paper is to present these findings and solicit feedback on our data, methods, and conclusions.
To analyze the issue, we developed a database of 47 countries that together constitute 91 percent of global GDP and looked at each episode of rapid money supply growth to see if it was followed by high inflation. In the majority of cases, it was not. In fact, the opposite was true—a large percentage of the cases of high inflation were not preceded by high money supply growth. These 47 countries all rank within the top 70 largest economies as measured by GDP and include each of the top 20 countries. If a country was not included, it was because we could not get a complete enough set of historical data on that country.
There are several reasons to want to better understand the causes of inflation. Currently, central banks in Japan, Europe and elsewhere are trying to engender a moderately higher level of inflation in order to stave off the drift toward deflation and under the belief that it will add to job and economic growth. Also, both public and private debt have reached such high levels in ratio to GDP that some policymakers are beginning to reflect on potential paths to deleveraging, and inflation is one such path. Lastly, a number of countries are trying to moderate levels of inflation that are deemed too high. For these countries, too, a deeper understanding of the mechanisms of inflation is important. more>
Posted in Business, Economic development, Economy, Education, History, Regulations
Tagged Banking reform, Capital, Debt, Financial crisis, Inflation, Money creation, Skills
Beyond 5G: What’s next for IMT?
ITU – The ITU Radiocommunication Sector (ITU-R) has recently published Recommendation ITU-R M.2150 titled ‘Detailed specifications of the radio interfaces of IMT-2020’.
Following the evaluation of various radio technology candidates for IMT-2020 at the end of last year, the newly published Recommendation represents a set of terrestrial radio interface specifications which have been combined into a single document.
The development and approval of this international mobile technology (IMT) standard will support several use cases that leverage the advantages of 5G.
For instance, it will contribute, amongst many other things, to accelerating the response time of autonomous vehicles and enable new and more realistic augmented/virtual reality (AR/VR) experiences.
Understanding the IMT process
A solid grasp of the IMT process is key to understand the significance of the latest 5G developments at ITU. The process consists of 4 main phases:
1. “ITU-R Vision” and definitions
2. Minimum requirements and evaluation criteria
3. Invitation for proposals, evaluation, and consensus building
4. Specification, approval, and implementation
Note: The results of these procedural steps are documented in ITU-R Recommendations and ITU-R Reports. more>
Posted in Broadband, Business, Communication industry, Economy, Education, History, How to, Net, Regulations, Technology, Telecom industry
Tagged Broadband, Business improvement, Internet, Skills, Technology