JULY 2006

Inflation’s Economic Cost:  How Large? How Certain?

Central bankers believe that low inflation and long-term economic growth go hand in hand. The evidence about the costs of inflation, however, is not as clear-cut.

Wealth Gains Don’t Offset Decline in Saving

Although some data show that household wealth is rising, we shouldn’t be complacent about the flip side of the coin—that personal saving is in a nosedive.

Families Are Digging Deeper Into Debt

The Fed’s triennial Survey of Consumer Finances found that median household debt rose almost 34 percent between 2001 and 2004, while net worth rose just 1.5 percent.