If the current level of output and employment is made to depend on inflation, a slowing down in the pace of inflation will produce recessionary symptoms. Moreover, as the economy becomes adjusted to a particular rate of inflation, the rate must itself be continuously increased if symptoms of a depression are to be avoided: to inflate is to have "a tiger by the tail", writes Sudha R. Shenoy (1943-2008).

This audio Mises Daily is narrated by Floy Liley.