Kimbrel, Marvin Monroe, 1916-1999 and Federal Reserve Bank of Atlanta "What Does Inflation Cost?." Address Before the Independent Bankers' Association of America, 39th Annual Convention, March 18, 1969, https://fraser.stlouisfed.org/title/5259/item/531315, accessed on March 1, 2025.

Title: What Does Inflation Cost? : Address Before the Independent Bankers' Association of America, 39th Annual Convention

Date: March 18, 1969
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image-container-0 WHAT DOES INFLATION COST? An address before the Independent Bankers' Association of A m erica 39th Annual Convention March 18, 1969 by Monroe Kimbrel, President Federal Reserve Bank of Atlanta At this time of year, many of us like to look back and m easure our accomplishments. I could, therefore, take the easy way and spend my allotted time reminding you of the good things we have gained. You recognize, I am sure, that we as a nation achieved much in 1968, and the future looks very bright. You also no doubt recognize that the nation's banks shared in this growth, with de posits and earnings up sharply. I will not, however, enlarge on these points of -which you are aware, but should like to discuss the losses we suffered because of the failure to stem the acceleration of inflation during 1968. Let us consider three developments that, although they
image-container-1 - 2- cover only a part of the loss incurred by inflation, do m erit our serious reflection. 1. At the end of 1968, the dollar -- as measured by con sumer prices -- was worth almost 5 percent less than it was a year earlier. 2. The United States, partly because of the inflationary trend, lost the major part of its favorable position in world trade. 3. In some instances, planning for inflation was substituted for planning for production by a change of emphasis in making judgments on spending and investing. (In my opinion this is the greatest loss. ) No doubt, some businessmen are happy about their ability to charge higher prices; their financial statements look better as a result. Also, corporations may point to increased earnings per share of stock. Businessmen may be especially happy if the increase in the prices of goods they sell is m ore than the increase in the prices of goods and services they buy. This happiness, however, will sour if the prices of the merchandise or services they offer do not continue to rise over the prices of their purchases.
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Date: March 18, 1969
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