Planck Foundation



There are certainly limits to which a government or central bank can push inflation. Inflation often is called the hidden tax (by watering realized values as time passed by). Inflation in times of positive economic growth never even has caused any resistance, except from some monetary fundamentalists. Inflation in times of negative economic growth (economic crimp) certainly will cause huge resistance because than no longer the positive counter balance the negative, but there is a situation of double values negative influencing factors. This is called stagflation. Stagflation will put enormous economic/societal pressure on both governments and central banks. Pressure of that intensity that governments could be taken over by non democratic counter forces.

Author: Gijs Graafland

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