Capacity Utilization

نویسندگان
چکیده

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Is “High” Capacity Utilization Inflationary?

C apacity utilization in U.S. industry features prominently in discussions of inflation. This prominence derives from the widely held viewpoint that “high” rates of capacity utilization are tantamount to resourceshortage conditions or “bottlenecks” that inevitably erupt into price inflation. For instance, an article in Citicorp’s Economic Week (January 18, 1994) argues: “In the past, a utilizat...

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Capacity Utilization and U.S. Inflation

Policymakers and economic analysts have recently been concerned about potential inflationary pressures in the U.S. economy. Various economic statistics show the amount of unused productive resources has been diminishing. For example, the civilian unemployment rate has decreased and the capacity utilization rate of the nation’s factories has risen. If real output grows rapidly in the future, the...

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ژورنال

عنوان ژورنال: Journal of Economic Perspectives

سال: 1997

ISSN: 0895-3309

DOI: 10.1257/jep.11.1.151