<Dl> <Dd> "The inflationism of the currency systems of Europe has proceeded to extraordinary lengths . The various belligerent Governments, unable, or too timid or too short - sighted to secure from loans or taxes the resources they required, have printed notes for the balance ." </Dd> </Dl> <Dd> "The inflationism of the currency systems of Europe has proceeded to extraordinary lengths . The various belligerent Governments, unable, or too timid or too short - sighted to secure from loans or taxes the resources they required, have printed notes for the balance ." </Dd> <P> Keynes also pointed out how government price controls discourage production . </P> <Dl> <Dd> "The presumption of a spurious value for the currency, by the force of law expressed in the regulation of prices, contains in itself, however, the seeds of final economic decay, and soon dries up the sources of ultimate supply . If a man is compelled to exchange the fruits of his labours for paper which, as experience soon teaches him, he cannot use to purchase what he requires at a price comparable to that which he has received for his own products, he will keep his produce for himself, dispose of it to his friends and neighbours as a favour, or relax his efforts in producing it . A system of compelling the exchange of commodities at what is not their real relative value not only relaxes production, but leads finally to the waste and inefficiency of barter ." </Dd> </Dl>

Why was inflation so high in the 1970s