“Inflation For Progress A Discredited Policy”

Press, Volume XCIX, Issue 29368, 22 November 1960, Page 21

“Inflation For Progress A Discredited Policy”

The theory that continuous inflation is both inevitable and desirable for economic progress is now largely discredited in most Western- economics, according to Mr M. C. Buttfield, general manager of the A.M.P. Society. Mr Buttfleld said in an interview in Christchurch yesterday that in the increasingly competitive world trade situation, the countries with sound economy policies which facilitated real growth and development were likely to fare best. Amongst the many evils which inflation brought was the encouragement given to speculation. Unfortunately if this kind of philosophy became widespread within a community losses were bound to be sustained, often by

those least able to bear them

Fortunately, said Mr Buttfield, there is now a distinct reaction away from some of the more speculative and fanciful forms of investment and savings media which have sprung up in recent years. There has been a marked firming of interest in sound and established savings channels. Mr Buttfield said that the strong rise in private savings in New Zealand in 1959-60 was particularly welcome and impressive. Mr Buttfield, who has been general manager of the AMP Society for the last 13 years, is making a farewell visit to New Zealand before his retirement at the end of the year. He is travelling with the chairman of the society’s principal board <Mr C. G. Cranel.