It is always with mixed feelings of pleasure and trepidation that I accept an invitation to speak at the American Bankers Association annual convention. I still have a disconcerted remembrance of my acceptance of your first invitation, which had been scheduled for October 20, 1987.
This can distort saving and investment incentives and increase the inflation-risk premium embedded in interest rates. Eventually a reaction sets in against high inflation. Past experiences suggest that reducing inflation materially usually involves a greater slowing in activity than the boost to growth  3  Acemoglu, Johnson and Robinson (2004). 4  See, for example, Barro (1995), Bruno and Easterly (1998), OECD (2003).