Continuing inflation leading to erosion of purchasing power, unemployment and constraint of capital availability
The persistence of the current period of inflation and its apparent resistance to traditional fiscal and monetary policies implies a circular behavior that becomes increasingly impervious to ameliorative action. This behavior is attributed to: A concurrent industrial boom among industrialized nations; price and production policies; worldwide reductions in agricultural products; international shortages of natural resources and raw materials; and rise in multinational firms and merchant banking.