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Basic true contains in initial paragraphs of the total communique
Meetings of "the Big six" on a Downing street on May, 8th, 1977, passing under
Presidency of the prime minister of the Connected kingdom at participation
The US president, the chancellor of the Western Germany, the president of France,
The prime minister of Japan and the prime minister of Italy. In the first lines it is told:
"Inflation - not a medicine for unemployment, and one of its main reasons". It
True for which I struggled almost alone more than forty years. However, to
To misfortune, such formulation simplifies a problem. In many cases inflation
Really leads to time reduction of unemployment, but only the price
Unemployment increases later. It does inflation so
Seductive, politically - almost irresistible, and, for the same reason,
Especially artful.>, but the economists using the macroeconomic approach,
Usually either neglect, or underestimate it.
This hardest damage put by inflation, is not eliminated at all
Indexing. Really, the governmental measures such, facilitating
Life in the conditions of inflation, finally, should conduct to deterioration
Positions. Certainly, they do not facilitate struggle against inflation, as people
Less realise, what exactly inflations they are obliged by the sufferings.
The assumption of professor Fridmana that is absolutely unjustified
"... Eliminating distortions in system of the relative prices, called by inflation,
Wide circulation of points on payment increase according to growth
Life costs in labour contracts will be facilitated for public by recognition
Changes of rates of inflation, thereby, having reduced a time log of the adaptation to
To similar changes and having given, thus, the big sensitivity and
Flexibility to a nominal price level ".
Such resistance of inflation, at softening of some its visible effects,
Will be weaker, and it will proceed, accordingly, longer.
However, professor Fridman openly rejects any assumptions that
Indexation is replacement of stable money , but he tries
To make its more tolerant in short-term prospect, and I consider any
The similar enterprise extremely dangerous. Despite its negation, me
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