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In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.^[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.^[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time.^[4]

Inflation's effects on an economy are various and can be simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which may discourage investment and savings, and if inflation is rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring central banks can adjust nominal interest rates (intended to mitigate recessions),^[5] and encouraging investment in non-monetary capital projects.

Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.^[6] Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to growth in the money supply. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.^[7][8]

Today, most economists favor a low, steady rate of inflation.^[9] Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy.^[10] The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.^[11]

History[link]

Annual inflation rates in the United States from 1666 to 2004.

Increases in the quantity of money or in the overall money supply (or debasement of the means of exchange) have occurred in many different societies throughout history, changing with different forms of money used.^[12][13] For instance, when gold was used as currency, the government could collect gold coins, melt them down, mix them with other metals such a silver, copper or lead, and reissue them at the same nominal value. By diluting the gold with other metals, the government could issue more coins without also needing to increase the amount of gold used to make them. When the cost of each coin is lowered in this way, the government profits from an increase in seigniorage.^[14] This practice would increase the money supply but at the same time the relative value of each coin would be lowered. As the relative value of the coins becomes lower, consumers would need to give more coins in exchange for the same goods and services as before. These goods and services would experience a price increase as the value of each coin is reduced.^[15]

Historically, infusions of gold or silver into an economy also led to inflation. From the second half of the 15th century to the first half of the 17th, Western Europe experienced a major inflationary cycle referred to as the "price revolution",^[16][17] with prices on average rising perhaps sixfold over 150 years. This was largely caused by the sudden influx of gold and silver from the New World into Habsburg Spain.^[18] The silver spread throughout a previously cash-starved Europe and caused widespread inflation.^[19][20] Demographic factors also contributed to upward pressure on prices, with European population growth after depopulation caused by the Black Death pandemic.

By the nineteenth century, economists categorized three separate factors that cause a rise or fall in the price of goods: a change in the value or production costs of the good, a change in the price of money which then was usually a fluctuation in the commodity price of the metallic content in the currency, and currency depreciation resulting from an increased supply of currency relative to the quantity of redeemable metal backing the currency. Following the proliferation of private banknote currency printed during the American Civil War, the term "inflation" started to appear as a direct reference to the currency depreciation that occurred as the quantity of redeemable banknotes outstripped the quantity of metal available for their redemption. At that time, the term inflation referred to the devaluation of the currency, and not to a rise in the price of goods.^[21]

This relationship between the over-supply of banknotes and a resulting depreciation in their value was noted by earlier classical economists such as David Hume and David Ricardo, who would go on to examine and debate what effect a currency devaluation (later termed monetary inflation) has on the price of goods (later termed price inflation, and eventually just inflation).^[22]

The adoption of fiat currency (paper money) by many countries, from the 18th century onwards, made much larger variations in the supply of money possible. Since then, huge increases in the supply of paper money have taken place in a number of countries, producing hyperinflations – episodes of extreme inflation rates much higher than those observed in earlier periods of commodity money. The hyperinflation in the Weimar Republic of Germany is a notable example.

Related definitions[link]

The term "inflation" originally referred to increases in the amount of money in circulation, and some economists still use the word in this way. However, most economists today use the term "inflation" to refer to a rise in the price level. An increase in the money supply may be called monetary inflation, to distinguish it from rising prices, which may also for clarity be called 'price inflation'.^[23] Economists generally agree that in the long run, inflation is caused by increases in the money supply.^[24]

Other economic concepts related to inflation include: deflation – a fall in the general price level; disinflation – a decrease in the rate of inflation; hyperinflation – an out-of-control inflationary spiral; stagflation – a combination of inflation, slow economic growth and high unemployment; and reflation – an attempt to raise the general level of prices to counteract deflationary pressures.

Since there are many possible measures of the price level, there are many possible measures of price inflation. Most frequently, the term "inflation" refers to a rise in a broad price index representing the overall price level for goods and services in the economy. The Consumer Price Index (CPI), the Personal Consumption Expenditures Price Index (PCEPI) and the GDP deflator are some examples of broad price indices. However, "inflation" may also be used to describe a rising price level within a narrower set of assets, goods or services within the economy, such as commodities (including food, fuel, metals), financial assets (such as stocks, bonds and real estate), services (such as entertainment and health care), or labor. The Reuters-CRB Index (CCI), the Producer Price Index, and Employment Cost Index (ECI) are examples of narrow price indices used to measure price inflation in particular sectors of the economy. Core inflation is a measure of inflation for a subset of consumer prices that excludes food and energy prices, which rise and fall more than other prices in the short term. The Federal Reserve Board pays particular attention to the core inflation rate to get a better estimate of long-term future inflation trends overall.^[25]

Measures[link]

CPI inflation (year-on-year) in the United States from 1914 to 2010.

Inflation is usually estimated by calculating the inflation rate of a price index, usually the Consumer Price Index.^[26] The Consumer Price Index measures prices of a selection of goods and services purchased by a "typical consumer".^[4] The inflation rate is the percentage rate of change of a price index over time.

For instance, in January 2007, the U.S. Consumer Price Index was 202.416, and in January 2008 it was 211.080. The formula for calculating the annual percentage rate inflation in the CPI over the course of 2007 is

Failed to parse (Missing texvc executable; please see math/README to configure.): \left(\frac{211.080-202.416}{202.416}\right)\times100=4.28%

The resulting inflation rate for the CPI in this one year period is 4.28%, meaning the general level of prices for typical U.S. consumers rose by approximately four percent in 2007.^[27]

Other widely used price indices for calculating price inflation include the following:

• Producer price indices (PPIs) which measures average changes in prices received by domestic producers for their output. This differs from the CPI in that price subsidization, profits, and taxes may cause the amount received by the producer to differ from what the consumer paid. There is also typically a delay between an increase in the PPI and any eventual increase in the CPI. Producer price index measures the pressure being put on producers by the costs of their raw materials. This could be "passed on" to consumers, or it could be absorbed by profits, or offset by increasing productivity. In India and the United States, an earlier version of the PPI was called the Wholesale Price Index.
• Commodity price indices, which measure the price of a selection of commodities. In the present commodity price indices are weighted by the relative importance of the components to the "all in" cost of an employee.
• Core price indices: because food and oil prices can change quickly due to changes in supply and demand conditions in the food and oil markets, it can be difficult to detect the long run trend in price levels when those prices are included. Therefore most statistical agencies also report a measure of 'core inflation', which removes the most volatile components (such as food and oil) from a broad price index like the CPI. Because core inflation is less affected by short run supply and demand conditions in specific markets, central banks rely on it to better measure the inflationary impact of current monetary policy.

Other common measures of inflation are:

• GDP deflator is a measure of the price of all the goods and services included in gross domestic product (GDP). The US Commerce Department publishes a deflator series for US GDP, defined as its nominal GDP measure divided by its real GDP measure.
• Regional inflation The Bureau of Labor Statistics breaks down CPI-U calculations down to different regions of the US.
• Historical inflation Before collecting consistent econometric data became standard for governments, and for the purpose of comparing absolute, rather than relative standards of living, various economists have calculated imputed inflation figures. Most inflation data before the early 20th century is imputed based on the known costs of goods, rather than compiled at the time. It is also used to adjust for the differences in real standard of living for the presence of technology.
• Asset price inflation is an undue increase in the prices of real or financial assets, such as stock (equity) and real estate. While there is no widely accepted index of this type, some central bankers have suggested that it would be better to aim at stabilizing a wider general price level inflation measure that includes some asset prices, instead of stabilizing CPI or core inflation only. The reason is that by raising interest rates when stock prices or real estate prices rise, and lowering them when these asset prices fall, central banks might be more successful in avoiding bubbles and crashes in asset prices.^{[dubious – discuss]}

Issues in measuring[link]

Measuring inflation in an economy requires objective means of differentiating changes in nominal prices on a common set of goods and services, and distinguishing them from those price shifts resulting from changes in value such as volume, quality, or performance. For example, if the price of a 10 oz. can of corn changes from $0.90 to $1.00 over the course of a year, with no change in quality, then this price difference represents inflation. This single price change would not, however, represent general inflation in an overall economy. To measure overall inflation, the price change of a large "basket" of representative goods and services is measured. This is the purpose of a price index, which is the combined price of a "basket" of many goods and services. The combined price is the sum of the weighted average prices of items in the "basket". A weighted price is calculated by multiplying the unit price of an item to the number of those items the average consumer purchases. Weighted pricing is a necessary means to measuring the impact of individual unit price changes on the economy's overall inflation. The Consumer Price Index, for example, uses data collected by surveying households to determine what proportion of the typical consumer's overall spending is spent on specific goods and services, and weights the average prices of those items accordingly. Those weighted average prices are combined to calculate the overall price. To better relate price changes over time, indexes typically choose a "base year" price and assign it a value of 100. Index prices in subsequent years are then expressed in relation to the base year price.^[11] While comparing inflation measures for various periods one has to take into consideration the base effect as well.

Inflation measures are often modified over time, either for the relative weight of goods in the basket, or in the way in which goods and services from the present are compared with goods and services from the past. Over time, adjustments are made to the type of goods and services selected in order to reflect changes in the sorts of goods and services purchased by 'typical consumers'. New products may be introduced, older products disappear, the quality of existing products may change, and consumer preferences can shift. Both the sorts of goods and services which are included in the "basket" and the weighted price used in inflation measures will be changed over time in order to keep pace with the changing marketplace.^{[citation needed]}

Inflation numbers are often seasonally adjusted in order to differentiate expected cyclical cost shifts. For example, home heating costs are expected to rise in colder months, and seasonal adjustments are often used when measuring for inflation to compensate for cyclical spikes in energy or fuel demand. Inflation numbers may be averaged or otherwise subjected to statistical techniques in order to remove statistical noise and volatility of individual prices.^{[citation needed]}

When looking at inflation, economic institutions may focus only on certain kinds of prices, or special indices, such as the core inflation index which is used by central banks to formulate monetary policy.^{[citation needed]}

Most inflation indices are calculated from weighted averages of selected price changes. This necessarily introduces distortion, and can lead to legitimate disputes about what the true inflation rate is. This problem can be overcome by including all available price changes in the calculation, and then choosing the median value.^[28]

Effects[link]

General[link]

An increase in the general level of prices implies a decrease in the purchasing power of the currency. That is, when the general level of prices rises, each monetary unit buys fewer goods and services. The effect of inflation is not distributed evenly in the economy, and as a consequence there are hidden costs to some and benefits to others from this decrease in the purchasing power of money. For example, with inflation, lenders or depositors who are paid a fixed rate of interest on loans or deposits will lose purchasing power from their interest earnings, while their borrowers benefit. Individuals or institutions with cash assets will experience a decline in the purchasing power of their holdings. Increases in payments to workers and pensioners often lag behind inflation, especially for those with fixed payments. Increases in the price level (inflation) erode the real value of money (the functional currency) and other items with an underlying monetary nature.

Debtors who have debts with a fixed nominal rate of interest will see a reduction in the "real" interest rate as the inflation rate rises. The real interest on a loan is the nominal rate minus the inflation rate.The formula R = N-I approximates the correct answer as long as both the nominal interest rate and the inflation rate are small. The correct equation is r = n/i where r, n and i are expressed as ratios (e.g. 1.2 for +20%, 0.8 for −20%). As an example, when the inflation rate is 3%, a loan with a nominal interest rate of 5% would have a real interest rate of approximately 2%. Any unexpected increase in the inflation rate would decrease the real interest rate. Banks and other lenders adjust for this inflation risk either by including an inflation risk premium to fixed interest rate loans, or lending at an adjustable rate.

Negative[link]

High or unpredictable inflation rates are regarded as harmful to an overall economy. They add inefficiencies in the market, and make it difficult for companies to budget or plan long-term. Inflation can act as a drag on productivity as companies are forced to shift resources away from products and services in order to focus on profit and losses from currency inflation.^[11] Uncertainty about the future purchasing power of money discourages investment and saving.^[29] And inflation can impose hidden tax increases, as inflated earnings push taxpayers into higher income tax rates unless the tax brackets are indexed to inflation.

With high inflation, purchasing power is redistributed from those on fixed nominal incomes, such as some pensioners whose pensions are not indexed to the price level, towards those with variable incomes whose earnings may better keep pace with the inflation.^[11] This redistribution of purchasing power will also occur between international trading partners. Where fixed exchange rates are imposed, higher inflation in one economy than another will cause the first economy's exports to become more expensive and affect the balance of trade. There can also be negative impacts to trade from an increased instability in currency exchange prices caused by unpredictable inflation.

Cost-push inflation

High inflation can prompt employees to demand rapid wage increases, to keep up with consumer prices. In the cost-push theory of inflation, rising wages in turn can help fuel inflation. In the case of collective bargaining, wage growth will be set as a function of inflationary expectations, which will be higher when inflation is high. This can cause a wage spiral.^[30] In a sense, inflation begets further inflationary expectations, which beget further inflation.

Hoarding

People buy durable and/or non-perishable commodities and other goods as stores of wealth, to avoid the losses expected from the declining purchasing power of money, creating shortages of the hoarded goods.

Social unrest and revolts

Inflation can lead to massive demonstrations and revolutions. For example, inflation and in particular food inflation is considered as one of the main reasons that caused the 2010–2011 Tunisian revolution^[31] and the 2011 Egyptian revolution,^[32] according to many observators including Robert Zoellick,^[33] president of the World Bank. Tunisian president Zine El Abidine Ben Ali was ousted, Egyptian President Hosni Mubarak was also ousted after only 18 days of demonstrations, and protests soon spread in many countries of North Africa and Middle East.

Hyperinflation

If inflation gets totally out of control (in the upward direction), it can grossly interfere with the normal workings of the economy, hurting its ability to supply goods. Hyperinflation can lead to the abandonment of the use of the country's currency, leading to the inefficiencies of barter.

Allocative efficiency

A change in the supply or demand for a good will normally cause its relative price to change, signaling to buyers and sellers that they should re-allocate resources in response to the new market conditions. But when prices are constantly changing due to inflation, price changes due to genuine relative price signals are difficult to distinguish from price changes due to general inflation, so agents are slow to respond to them. The result is a loss of allocative efficiency.

Shoe leather cost

High inflation increases the opportunity cost of holding cash balances and can induce people to hold a greater portion of their assets in interest paying accounts. However, since cash is still needed in order to carry out transactions this means that more "trips to the bank" are necessary in order to make withdrawals, proverbially wearing out the "shoe leather" with each trip.

Menu costs

With high inflation, firms must change their prices often in order to keep up with economy-wide changes. But often changing prices is itself a costly activity whether explicitly, as with the need to print new menus, or implicitly.

Business cycles

According to the Austrian Business Cycle Theory, inflation sets off the business cycle. Austrian economists hold this to be the most damaging effect of inflation. According to Austrian theory, artificially low interest rates and the associated increase in the money supply lead to reckless, speculative borrowing, resulting in clusters of malinvestments, which eventually have to be liquidated as they become unsustainable.^[34]

Positive[link]

Labor-market adjustments

Nominal wages are slow to adjust downwards. This can lead to prolonged disequilibrium and high unemployment in the labor market. Since inflation allows real wages to fall even if nominal wages are kept constant, moderate inflation enables labor markets to reach equilibrium faster.^[35]

Room to maneuver

The primary tools for controlling the money supply are the ability to set the discount rate, the rate at which banks can borrow from the central bank, and open market operations, which are the central bank's interventions into the bonds market with the aim of affecting the nominal interest rate. If an economy finds itself in a recession with already low, or even zero, nominal interest rates, then the bank cannot cut these rates further (since negative nominal interest rates are impossible) in order to stimulate the economy – this situation is known as a liquidity trap. A moderate level of inflation tends to ensure that nominal interest rates stay sufficiently above zero so that if the need arises the bank can cut the nominal interest rate.^{[citation needed]}

Mundell–Tobin effect

The Nobel laureate Robert Mundell noted that moderate inflation would induce savers to substitute lending for some money holding as a means to finance future spending. That substitution would cause market clearing real interest rates to fall.^[36] The lower real rate of interest would induce more borrowing to finance investment. In a similar vein, Nobel laureate James Tobin noted that such inflation would cause businesses to substitute investment in physical capital (plant, equipment, and inventories) for money balances in their asset portfolios. That substitution would mean choosing the making of investments with lower rates of real return. (The rates of return are lower because the investments with higher rates of return were already being made before.)^[37] The two related effects are known as the Mundell–Tobin effect. Unless the economy is already overinvesting according to models of economic growth theory, that extra investment resulting from the effect would be seen as positive.

Instability with Deflation

Economist S.C. Tsaing noted that once substantial deflation is expected, two important effects will appear; both a result of money holding substituting for lending as a vehicle for saving.^[38] The first was that continually falling prices and the resulting incentive to hoard money will cause instability resulting from the likely increasing fear, while money hoards grow in value, that the value of those hoards are at risk, as people realize that a movement to trade those money hoards for real goods and assets will quickly drive those prices up. Any movement to spend those hoards "once started would become a tremendous avalanche, which could rampage for a long time before it would spend itself."^[39] Thus, a regime of long-term deflation is likely to be interrupted by periodic spikes of rapid inflation and consequent real economic disruptions. Moderate and stable inflation would avoid such a seesawing of price movements.

Financial Market Inefficiency with Deflation

The second effect noted by Tsaing is that when savers have substituted money holding for lending on financial markets, the role of those markets in channeling savings into investment is undermined. With nominal interest rates driven to zero, or near zero, from the competition with a high return money asset, there would be no price mechanism in whatever is left of those markets. With financial markets effectively euthanized, the remaining goods and physical asset prices would move in perverse directions. For example, an increased desire to save could not push interest rates further down (and thereby stimulate investment) but would instead cause additional money hoarding, driving consumer prices further down and making investment in consumer goods production thereby less attractive. Moderate inflation, once its expectation is incorporated into nominal interest rates, would give those interest rates room to go both up and down in response to shifting investment opportunities, or savers' preferences, and thus allow financial markets to function in a more normal fashion.

Causes[link]

The Bank of England, central bank of the United Kingdom, monitors causes and attempts to control inflation.

Historically, a great deal of economic literature was concerned with the question of what causes inflation and what effect it has. There were different schools of thought as to the causes of inflation. Most can be divided into two broad areas: quality theories of inflation and quantity theories of inflation. The quality theory of inflation rests on the expectation of a seller accepting currency to be able to exchange that currency at a later time for goods that are desirable as a buyer. The quantity theory of inflation rests on the quantity equation of money, that relates the money supply, its velocity, and the nominal value of exchanges. Adam Smith and David Hume proposed a quantity theory of inflation for money, and a quality theory of inflation for production.^{[citation needed]}

Currently, the quantity theory of money is widely accepted as an accurate model of inflation in the long run. Consequently, there is now broad agreement among economists that in the long run, the inflation rate is essentially dependent on the growth rate of money supply. However, in the short and medium term inflation may be affected by supply and demand pressures in the economy, and influenced by the relative elasticity of wages, prices and interest rates.^[24] The question of whether the short-term effects last long enough to be important is the central topic of debate between monetarist and Keynesian economists. In monetarism prices and wages adjust quickly enough to make other factors merely marginal behavior on a general trend-line. In the Keynesian view, prices and wages adjust at different rates, and these differences have enough effects on real output to be "long term" in the view of people in an economy.

Keynesian view[link]

Keynesian economic theory proposes that changes in money supply do not directly affect prices, and that visible inflation is the result of pressures in the economy expressing themselves in prices.

There are three major types of inflation, as part of what Robert J. Gordon calls the "triangle model":^[40]

• Demand-pull inflation is caused by increases in aggregate demand due to increased private and government spending, etc. Demand inflation is constructive to a faster rate of economic growth since the excess demand and favourable market conditions will stimulate investment and expansion.
• Cost-push inflation, also called "supply shock inflation," is caused by a drop in aggregate supply (potential output). This may be due to natural disasters, or increased prices of inputs. For example, a sudden decrease in the supply of oil, leading to increased oil prices, can cause cost-push inflation. Producers for whom oil is a part of their costs could then pass this on to consumers in the form of increased prices. Another example stems from unexpectedly high Insured Losses, either legitimate (catastrophes) or fraudulent (which might be particularly prevalent in times of recession).^{[citation needed]}
• Built-in inflation is induced by adaptive expectations, and is often linked to the "price/wage spiral". It involves workers trying to keep their wages up with prices (above the rate of inflation), and firms passing these higher labor costs on to their customers as higher prices, leading to a 'vicious circle'. Built-in inflation reflects events in the past, and so might be seen as hangover inflation.

Demand-pull theory states that the rate of inflation accelerates whenever aggregate demand is increased beyond the ability of the economy to produce (its potential output). Hence, any factor that increases aggregate demand can cause inflation.^[41] However, in the long run, aggregate demand can be held above productive capacity only by increasing the quantity of money in circulation faster than the real growth rate of the economy. Another (although much less common) cause can be a rapid decline in the demand for money, as happened in Europe during the Black Death, or in the Japanese occupied territories just before the defeat of Japan in 1945.

The effect of money on inflation is most obvious when governments finance spending in a crisis, such as a civil war, by printing money excessively. This sometimes leads to hyperinflation, a condition where prices can double in a month or less. Money supply is also thought to play a major role in determining moderate levels of inflation, although there are differences of opinion on how important it is. For example, Monetarist economists believe that the link is very strong; Keynesian economists, by contrast, typically emphasize the role of aggregate demand in the economy rather than the money supply in determining inflation. That is, for Keynesians, the money supply is only one determinant of aggregate demand.

Some Keynesian economists also disagree with the notion that central banks fully control the money supply, arguing that central banks have little control, since the money supply adapts to the demand for bank credit issued by commercial banks. This is known as the theory of endogenous money, and has been advocated strongly by post-Keynesians as far back as the 1960s. It has today become a central focus of Taylor rule advocates. This position is not universally accepted – banks create money by making loans, but the aggregate volume of these loans diminishes as real interest rates increase. Thus, central banks can influence the money supply by making money cheaper or more expensive, thus increasing or decreasing its production.

A fundamental concept in inflation analysis is the relationship between inflation and unemployment, called the Phillips curve. This model suggests that there is a trade-off between price stability and employment. Therefore, some level of inflation could be considered desirable in order to minimize unemployment. The Phillips curve model described the U.S. experience well in the 1960s but failed to describe the combination of rising inflation and economic stagnation (sometimes referred to as stagflation) experienced in the 1970s.

Thus, modern macroeconomics describes inflation using a Phillips curve that shifts (so the trade-off between inflation and unemployment changes) because of such matters as supply shocks and inflation becoming built into the normal workings of the economy. The former refers to such events as the oil shocks of the 1970s, while the latter refers to the price/wage spiral and inflationary expectations implying that the economy "normally" suffers from inflation. Thus, the Phillips curve represents only the demand-pull component of the triangle model.

Another concept of note is the potential output (sometimes called the "natural gross domestic product"), a level of GDP, where the economy is at its optimal level of production given institutional and natural constraints. (This level of output corresponds to the Non-Accelerating Inflation Rate of Unemployment, NAIRU, or the "natural" rate of unemployment or the full-employment unemployment rate.) If GDP exceeds its potential (and unemployment is below the NAIRU), the theory says that inflation will accelerate as suppliers increase their prices and built-in inflation worsens. If GDP falls below its potential level (and unemployment is above the NAIRU), inflation will decelerate as suppliers attempt to fill excess capacity, cutting prices and undermining built-in inflation.^[42]

However, one problem with this theory for policy-making purposes is that the exact level of potential output (and of the NAIRU) is generally unknown and tends to change over time. Inflation also seems to act in an asymmetric way, rising more quickly than it falls. Worse, it can change because of policy: for example, high unemployment under British Prime Minister Margaret Thatcher might have led to a rise in the NAIRU (and a fall in potential) because many of the unemployed found themselves as structurally unemployed (also see unemployment), unable to find jobs that fit their skills. A rise in structural unemployment implies that a smaller percentage of the labor force can find jobs at the NAIRU, where the economy avoids crossing the threshold into the realm of accelerating inflation.

Monetarist view[link]

Inflation is closely related to growth in money supply (using the M2 definition) over the long-run.

Monetarists believe the most significant factor influencing inflation or deflation is how fast the money supply grows or shrinks. They consider fiscal policy, or government spending and taxation, as ineffective in controlling inflation.^[43] According to the famous monetarist economist Milton Friedman, "Inflation is always and everywhere a monetary phenomenon."^[44] Some monetarists, however, will qualify this by making an exception for very short-term circumstances.

Monetarists assert that the empirical study of monetary history shows that inflation has always been a monetary phenomenon. The quantity theory of money, simply stated, says that any change in the amount of money in a system will change the price level. This theory begins with the equation of exchange:

Failed to parse (Missing texvc executable; please see math/README to configure.): MV = PQ

where

Failed to parse (Missing texvc executable; please see math/README to configure.): M

is the nominal quantity of money.

Failed to parse (Missing texvc executable; please see math/README to configure.): V

is the velocity of money in final expenditures;

Failed to parse (Missing texvc executable; please see math/README to configure.): P

is the general price level;

Failed to parse (Missing texvc executable; please see math/README to configure.): Q

is an index of the real value of final expenditures;

In this formula, the general price level is related to the level of real economic activity (Q), the quantity of money (M) and the velocity of money (V). The formula is an identity because the velocity of money (V) is defined to be the ratio of final nominal expenditure (Failed to parse (Missing texvc executable; please see math/README to configure.): PQ ) to the quantity of money (M).

Monetarists assume that the velocity of money is unaffected by monetary policy (at least in the long run), and the real value of output is determined in the long run by the productive capacity of the economy. Under these assumptions, the primary driver of the change in the general price level is changes in the quantity of money. With exogenous velocity (that is, velocity being determined externally and not being influenced by monetary policy), the money supply determines the value of nominal output (which equals final expenditure) in the short run. In practice, velocity is not exogenous in the short run, and so the formula does not necessarily imply a stable short-run relationship between the money supply and nominal output. However, in the long run, changes in velocity are assumed to be determined by the evolution of the payments mechanism. If velocity is relatively unaffected by monetary policy, the long-run rate of increase in prices (the inflation rate) is equal to the long run growth rate of the money supply plus the exogenous long-run rate of velocity growth minus the long run growth rate of real output.^[7]

Unemployment[link]

A connection between inflation and unemployment has been drawn since the emergence of large scale unemployment in the 19th century, and connections continue to be drawn today. In Marxian economics, the unemployed serve as a reserve army of labour, which restrain wage inflation. In the 20th century, similar concepts in Keynesian economics include the NAIRU (Non-Accelerating Inflation Rate of Unemployment) and the Phillips curve.

Rational expectations theory[link]

Rational expectations theory holds that economic actors look rationally into the future when trying to maximize their well-being, and do not respond solely to immediate opportunity costs and pressures. In this view, while generally grounded in monetarism, future expectations and strategies are important for inflation as well.

A core assertion of rational expectations theory is that actors will seek to "head off" central-bank decisions by acting in ways that fulfill predictions of higher inflation. This means that central banks must establish their credibility in fighting inflation, or economic actors will make bets that the central bank will expand the money supply rapidly enough to prevent recession, even at the expense of exacerbating inflation. Thus, if a central bank has a reputation as being "soft" on inflation, when it announces a new policy of fighting inflation with restrictive monetary growth economic agents will not believe that the policy will persist; their inflationary expectations will remain high, and so will inflation. On the other hand, if the central bank has a reputation of being "tough" on inflation, then such a policy announcement will be believed and inflationary expectations will come down rapidly, thus allowing inflation itself to come down rapidly with minimal economic disruption.

Austrian view[link]

For more details on this topic, see The Austrian view of inflation and monetary inflation

The Austrian School asserts that inflation is an increase in the money supply, rising prices are merely consequences and this semantic difference is important in defining inflation.^[45] Austrians stress that inflation affects prices in various degree, i.e. that prices rise more sharply in some sectors than in other sectors of the economy. The reason for the disparity is that excess money will be concentrated to certain sectors, such as housing, stocks or health care. Because of this disparity, Austrians argue that the aggregate price level can be very misleading when observing the effects of inflation. Austrian economists measure inflation by calculating the growth of new units of money that are available for immediate use in exchange, that have been created over time.^[46][47][48]

Real bills doctrine[link]

Within the context of a fixed specie basis for money, one important controversy was between the quantity theory of money and the real bills doctrine (RBD). Within this context, quantity theory applies to the level of fractional reserve accounting allowed against specie, generally gold, held by a bank. Currency and banking schools of economics argue the RBD, that banks should also be able to issue currency against bills of trading, which is "real bills" that they buy from merchants. This theory was important in the 19th century in debates between "Banking" and "Currency" schools of monetary soundness, and in the formation of the Federal Reserve. In the wake of the collapse of the international gold standard post 1913, and the move towards deficit financing of government, RBD has remained a minor topic, primarily of interest in limited contexts, such as currency boards. It is generally held in ill repute today, with Frederic Mishkin, a governor of the Federal Reserve going so far as to say it had been "completely discredited."

The debate between currency, or quantity theory, and banking schools in Britain during the 19th century prefigures current questions about the credibility of money in the present. In the 19th century the banking school had greater influence in policy in the United States and Great Britain, while the currency school had more influence "on the continent", that is in non-British countries, particularly in the Latin Monetary Union and the earlier Scandinavia monetary union.

Anti-classical or backing theory[link]

Another issue associated with classical political economy is the anti-classical hypothesis of money, or "backing theory". The backing theory argues that the value of money is determined by the assets and liabilities of the issuing agency.^[49] Unlike the Quantity Theory of classical political economy, the backing theory argues that issuing authorities can issue money without causing inflation so long as the money issuer has sufficient assets to cover redemptions. There are very few backing theorists, making quantity theory the dominant theory explaining inflation.^{[citation needed]}

Controlling inflation[link]

A variety of policies have been used to control inflation.

Monetary policy[link]

The U.S. effective federal funds rate charted over fifty years.

Today the primary tool for controlling inflation is monetary policy. Most central banks are tasked with keeping their inter-bank lending rates at low levels, normally to a target rate around 2% to 3% per annum, and within a targeted low inflation range, somewhere from about 2% to 6% per annum. A low positive inflation is usually targeted, as deflationary conditions are seen as dangerous for the health of the economy.

There are a number of methods that have been suggested to control inflation. Central banks such as the U.S. Federal Reserve can affect inflation to a significant extent through setting interest rates and through other operations. High interest rates and slow growth of the money supply are the traditional ways through which central banks fight or prevent inflation, though they have different approaches. For instance, some follow a symmetrical inflation target while others only control inflation when it rises above a target, whether express or implied.

Monetarists emphasize keeping the growth rate of money steady, and using monetary policy to control inflation (increasing interest rates, slowing the rise in the money supply). Keynesians emphasize reducing aggregate demand during economic expansions and increasing demand during recessions to keep inflation stable. Control of aggregate demand can be achieved using both monetary policy and fiscal policy (increased taxation or reduced government spending to reduce demand).

Fixed exchange rates[link]

Under a fixed exchange rate currency regime, a country's currency is tied in value to another single currency or to a basket of other currencies (or sometimes to another measure of value, such as gold). A fixed exchange rate is usually used to stabilize the value of a currency, vis-a-vis the currency it is pegged to. It can also be used as a means to control inflation. However, as the value of the reference currency rises and falls, so does the currency pegged to it. This essentially means that the inflation rate in the fixed exchange rate country is determined by the inflation rate of the country the currency is pegged to. In addition, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.

Under the Bretton Woods agreement, most countries around the world had currencies that were fixed to the US dollar. This limited inflation in those countries, but also exposed them to the danger of speculative attacks. After the Bretton Woods agreement broke down in the early 1970s, countries gradually turned to floating exchange rates. However, in the later part of the 20th century, some countries reverted to a fixed exchange rate as part of an attempt to control inflation. This policy of using a fixed exchange rate to control inflation was used in many countries in South America in the later part of the 20th century (e.g. Argentina (1991–2002), Bolivia, Brazil, and Chile).

Gold standard[link]

Under a gold standard, paper notes are convertible into pre-set, fixed quantities of gold.

The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set, fixed quantities of gold. The standard specifies how the gold backing would be implemented, including the amount of specie per currency unit. The currency itself has no innate value, but is accepted by traders because it can be redeemed for the equivalent specie. A U.S. silver certificate, for example, could be redeemed for an actual piece of silver.

The gold standard was partially abandoned via the international adoption of the Bretton Woods System. Under this system all other major currencies were tied at fixed rates to the dollar, which itself was tied to gold at the rate of $35 per ounce. The Bretton Woods system broke down in 1971, causing most countries to switch to fiat money – money backed only by the laws of the country.

According to Lawrence H. White, an F. A. Hayek Professor of Economic History “who values the Austrian tradition”^[50], economies based on the gold standard rarely experience inflation above 2 percent annually.^[51] However, historically, the U.S. saw inflation over 2% several times and a higher peak of inflation under the gold standard when compared to inflation after the gold standard.^[52] Under a gold standard, the long term rate of inflation (or deflation) would be determined by the growth rate of the supply of gold relative to total output.^[53] Critics argue that this will cause arbitrary fluctuations in the inflation rate, and that monetary policy would essentially be determined by gold mining.^[54][55]

Wage and price controls[link]

Another method attempted in the past have been wage and price controls ("incomes policies"). Wage and price controls have been successful in wartime environments in combination with rationing. However, their use in other contexts is far more mixed. Notable failures of their use include the 1972 imposition of wage and price controls by Richard Nixon. More successful examples include the Prices and Incomes Accord in Australia and the Wassenaar Agreement in the Netherlands.

In general wage and price controls are regarded as a temporary and exceptional measure, only effective when coupled with policies designed to reduce the underlying causes of inflation during the wage and price control regime, for example, winning the war being fought. They often have perverse effects, due to the distorted signals they send to the market. Artificially low prices often cause rationing and shortages and discourage future investment, resulting in yet further shortages. The usual economic analysis is that any product or service that is under-priced is overconsumed. For example, if the official price of bread is too low, there will be too little bread at official prices, and too little investment in bread making by the market to satisfy future needs, thereby exacerbating the problem in the long term.

Temporary controls may complement a recession as a way to fight inflation: the controls make the recession more efficient as a way to fight inflation (reducing the need to increase unemployment), while the recession prevents the kinds of distortions that controls cause when demand is high. However, in general the advice of economists is not to impose price controls but to liberalize prices by assuming that the economy will adjust and abandon unprofitable economic activity. The lower activity will place fewer demands on whatever commodities were driving inflation, whether labor or resources, and inflation will fall with total economic output. This often produces a severe recession, as productive capacity is reallocated and is thus often very unpopular with the people whose livelihoods are destroyed (see creative destruction).

Cost-of-living allowance[link]

The real purchasing-power of fixed payments is eroded by inflation unless they are inflation-adjusted to keep their real values constant. In many countries, employment contracts, pension benefits, and government entitlements (such as social security) are tied to a cost-of-living index, typically to the consumer price index.^[56] A cost-of-living allowance (COLA) adjusts salaries based on changes in a cost-of-living index. Salaries are typically adjusted annually in low inflation economies. During hyperinflation they are adjusted more often.^[56] They may also be tied to a cost-of-living index that varies by geographic location if the employee moves.

Annual escalation clauses in employment contracts can specify retroactive or future percentage increases in worker pay which are not tied to any index. These negotiated increases in pay are colloquially referred to as cost-of-living adjustments or cost-of-living increases because of their similarity to increases tied to externally determined indexes. Many economists and compensation analysts consider the idea of predetermined future "cost of living increases" to be misleading for two reasons: (1) For most recent periods in the industrialized world, average wages have increased faster than most calculated cost-of-living indexes, reflecting the influence of rising productivity and worker bargaining power rather than simply living costs, and (2) most cost-of-living indexes are not forward-looking, but instead compare current or historical data.^{citation required}

See also[link]

Notes[link]

References[link]

• Abel, Andrew; Bernanke, Ben (2005). Macroeconomics (5th ed.). Pearson 
• Barro, Robert J. (1997). Macroeconomics. Cambridge, Mass: MIT Press. p. 895. ISBN 0-262-02436-5 
• Blanchard, Olivier (2000). Macroeconomics (2nd ed.). Englewood Cliffs, N.J: Prentice Hall. ISBN 0-13-013306-X 
• Mankiw, N. Gregory (2002). Macroeconomics (5th ed.). Worth 
• Hall, Robert E.; Taylor, John B. (1993). Macroeconomics. New York: W.W. Norton. p. 637. ISBN 0-393-96307-1 
• Burda, Michael C.; Wyplosz, Charles (1997). Macroeconomics: a European text. Oxford [Oxfordshire]: Oxford University Press. ISBN 0-19-877468-0 

Further reading[link]

• Auernheimer, Leonardo, "The Honest Government's Guide to the Revenue From the Creation of Money," Journal of Political Economy, Vol. 82, No. 3, May/June 1974, pp. 598–606.
• Baumol, William J. and Alan S. Blinder, Macroeconomics: Principles and Policy, Tenth edition. Thomson South-Western, 2006. ISBN 0-324-22114-2
• Friedman, Milton, Nobel lecture: Inflation and unemployment 1977
• Hazlitt, Henry, What You Should Know About Inflation
• Laguerodie, Stephanie and Vergara, Francisco, The Theory of Price Controls (from Review of Political Economy)
• Mishkin, Frederic S., The Economics of Money, Banking, and Financial Markets, New York, Harper Collins, 1995.
• Murphy, Robert P., Is Inflation Harmless or Even Good?, Mises Institute
• Nenovsky. N, (2007). „Exchange Rate and Inflation: France and Bulgaria in the Interwar Period and the Contribution of Albert Aftalion (1874–1956)“.Bulgarian National Bank,(2006)
• Vasudevan, Ramaa, "What is the relation between inflation and unemployment?," in Dollars & Sense, September/October 2006
• Federal Reserve Bank of Boston, "Understanding Inflation and the Implications for Monetary Policy: A Phillips Curve Retrospective", Conference Series 53, June 9–11, 2008, Chatham, Massachusetts. (Also cf. Phillips curve article)

External links[link]

• NASA inflation calculator
• United States Bureau of Labor Statistics Consumer Price Index homepage
• Inflation 1290–2006 – Based on the historical Consumer Price Index of the Swedish Riksbank
• Inflation Calculator
• Summary of current international inflation figures – CPI and HICP
• Summary of current inflation in Euro Area – CPI and HICP

This article includes a list of references, but its sources remain unclear because it has insufficient inline citations. Please help to improve this article by introducing more precise citations. (March 2012)

The Shadow is a collection of serialized dramas, originally in pulp magazines, then on 1930s radio and then in a wide variety of media, that follow the exploits of the title character, a crimefighting vigilante in the pulps, which carried over to the airwaves as a "wealthy, young man about town" with psychic powers.^[2] One of the most famous pulp heroes of the 20th century, The Shadow has been featured in comic books, comic strips, television, video games, and at least five motion pictures. The radio drama is well-remembered for those episodes voiced by Orson Welles.

Introduced as a mysterious radio narrator by David Chrisman, William Sweets and Harry Engman Charlot for Street and Smith Publications, The Shadow was fully developed and transformed into a pop culture icon by pulp writer Walter B. Gibson.

The Shadow debuted on July 31, 1930, as the mysterious narrator of the Street and Smith radio program Detective Story Hour.^[3] After gaining popularity among the show's listeners, the narrator became the star of The Shadow Magazine on April 1, 1931, a pulp series created and primarily written by the prolific Gibson.

Over the years, the character evolved. On September 26, 1937, The Shadow radio drama officially premiered with the story "The Deathhouse Rescue", in which the character had "the power to cloud men's minds so they cannot see him." This was a contrivance for the radio; in the magazine stories, The Shadow did not have the ability to become literally invisible.

The introduction from The Shadow radio program, long-intoned by actor Frank Readick Jr., has earned a place in the American idiom: "Who knows what evil lurks in the hearts of men? The Shadow knows!" These words were accompanied by an ominous laugh and a musical theme, Camille Saint-Saëns' Le Rouet d'Omphale ("Omphale's Spinning Wheel", composed in 1872). At the end of each episode, The Shadow reminded listeners, "The weed of crime bears bitter fruit. Crime does not pay.... The Shadow knows!"

Publication history[link]

Detective Story Hour[link]

In order to boost the sales of their Detective Story Magazine, Street and Smith Publications hired David Chrisman of the Ruthrauff & Ryan advertising agency and writer-director William Sweets to adapt the magazine's stories into a radio series. Chrisman and Sweets felt the upcoming series should be narrated by a mysterious storyteller with a sinister voice, and began searching for a suitable name. One of their scriptwriters, Harry Engman Charlot, suggested various possibilities, such as "The Inspector" or "The Sleuth."^[4] Charlot then proposed the ideal name for the phantom announcer: "... The Shadow."^[4]

Thus, beginning on July 31, 1930,^[1][5] "The Shadow" was the name given to the mysterious narrator of the Detective Story Hour. The narrator was voiced by James LaCurto^[5] and, later, Frank Readick. The episodes were drawn from the Detective Story Magazine issued by Street and Smith, "the nation's oldest and largest publisher of pulp magazines."^[5] Although the latter company had hoped the radio broadcasts would boost the declining sales of the Detective Story Magazine, the result was quite different. Listeners found the sinister announcer much more compelling than the unrelated stories. They soon began asking newsdealers for copies of "that Shadow detective magazine," even though it did not exist.^[5]

Development[link]

Recognizing the demand and responding promptly, circulation manager Henry William Ralston of Street & Smith commissioned Walter B. Gibson to begin writing stories about "The Shadow." Using the pen name of Maxwell Grant and claiming that the stories were "from The Shadow's private annals as told to" him, Gibson wrote 282 out of 325 tales over the next 20 years: a novel-length story twice a month (1st and 15th). The first story produced was "The Living Shadow", published April 1, 1931.^[5]

Gibson initially fashioned the character as a man with villainous characteristics, who used them to battle crime, and in this was the very first superhero in the modern century for modern times complete with a stylized imagery, a stylized name, sidekicks, supervillains, and a secret identity. Clad in black, The Shadow operated mainly after dark, burglarizing in the name of justice, and terrifying criminals into vulnerability before he or someone else gunned them down. The character was a film noir antihero in every sense; Gibson himself claimed the literary inspirations for The Shadow were Bram Stoker's Dracula and Edward Bulwer-Lytton's The House and the Brain.^[4]

Because of the great effort involved in writing two full-length novels every month, several guest writers were hired to write occasional installments in order to lighten Gibson's work load. These guest writers included Lester Dent — who penned the Doc Savage stories — and Theodore Tinsley. In the late 1940s, mystery novelist Bruce Elliott (also a magician) would temporarily replace Gibson as the primary author of the pulp series.^[6] Richard Edward Wormser, a reader for Street & Smith, wrote two Shadow stories.^[7]

The Shadow Magazine ceased publication with the Summer 1949 issue, but Walter B. Gibson wrote three new "official" stories between 1963 and 1980. The first of these began a new series of nine updated Shadow novels from Belmont Books, starting with Return of The Shadow under his own by-line. But the remaining eight, The Shadow Strikes, Beware Shadow, Cry Shadow, The Shadow's Revenge, Mark of The Shadow, Shadow Go Mad, Night of The Shadow, and The Shadow, Destination: Moon, were not penned by Gibson but by Dennis Lynds under the "Maxwell Grant" byline. In these last eight novels, The Shadow was given psychic powers, including the radio character's ability "to cloud men's minds" so that he effectively became invisible, and was more of a spymaster than crime fighter.

Publications[link]

See List of The Shadow stories

Character development[link]

The character and look of The Shadow gradually evolved over his lengthy fictional existence.

As depicted in the pulps, The Shadow wore a black slouch hat and a black, crimson-lined cloak with an upturned collar over a standard black business suit. In the 1940s comic books, the later comic book series, and the 1994 film starring Alec Baldwin, he wore either the black slouch hat or a wide-brimmed, black fedora and a crimson scarf just below his nose and across his mouth and chin. Both the cloak and scarf covered either a black doubled-breasted trench coat or regular black suit. As seen in some of the later comics series, the hat and scarf would also be worn with either a black Inverness coat or Inverness cape.

But in the radio drama, which debuted in 1937, The Shadow became an invisible avenger who had learned, while "traveling through East Asia," "the mysterious power to cloud men's minds, so they could not see him." This revision of the character was born out of necessity: Time constraints of 1930s radio made it difficult to explain to listeners where The Shadow was hiding and how he was remaining concealed. Thus, the character was given the power to escape human sight. Voice effects were added to suggest The Shadow's seeming omnipresence.

In order to explain this power, The Shadow was described as a master of hypnotism, as explicitly stated in several radio episodes.

Background[link]

In print, The Shadow's real name is Kent Allard, and he was a famed aviator who fought for the French during World War I. He became known by the alias of The Black Eagle, according to The Shadow's Shadow, 1933, although later stories revised this alias as The Dark Eagle beginning with The Shadow Unmasks, 1937. After the war, Allard seeks a new challenge and decides to wage war on criminals. Allard fakes his death in the South American jungles, then returns to the United States. Arriving in New York City, he adopts numerous identities to conceal his existence.

One of these identities—indeed, the best known—is Lamont Cranston, a "wealthy young man about town." In the pulps, Cranston is a separate character; Allard frequently disguises himself as Cranston and adopts his identity ("The Shadow Laughs," 1931). While Cranston travels the world, Allard assumes his identity in New York. In their first meeting, Allard/The Shadow threatens Cranston, saying that he has arranged to switch signatures on various documents and other means that will allow him to take over the Lamont Cranston identity entirely unless Cranston agrees to allow Allard to impersonate him when he is abroad. Terrified, Cranston agrees. The two men sometimes meet in order to impersonate each other ("Crime over Miami," 1940). Apparently, the disguise works well because Allard and Cranston bear something of a resemblance to each other ("Dictator of Crime," 1941).

His other disguises include businessman Henry Arnaud, who first appeared in Green Eyes, Oct. 1932, elderly gentleman Isaac Twambley, who first appeared in No Time For Murder, and Fritz, who first appeared in The Living Shadow, Apr. 1931; in this last disguise, he pretends to be a doddering old janitor who works at Police Headquarters in order to listen in on conversations.

The Shadow appears as Henry Arnaud in "Atoms of Death," "Buried Evidence," "Death Jewels," "Death Premium," "Death Ship," "Green Eyes," "House of Silence," "Murder Trail," "Quetzal," "Realm of Doom," "The Black Master," "The Blue Sphinx," "The Case of Congressman Coyd," "The Circle of Death," "The City of Doom," "The Condor," "The Embassy Murders," "The Five Chameleons," "The Ghost Murders," "The Man From Shanghai," "The Plot Master," "The Radium Murders," "The Romanoff Jewels," "The Seven Drops of Blood," "The Shadow Unmasks," "The Shadow's Shadow," and "Wizard of Crime."

The Shadow appears as Isaac Twambley in "No Time for Murder," "Guardians of Death," "Death Has Grey Eyes," "The Stars Promise Death," "Dead Man's Chest, and "The Magigal's Mystery."

The Shadow appears as Fritz in at least 23 Shadow novels: "The Living Shadow," "Hidden Death," "The Ghost Makers," "The Crime Clinic," "Crime Circus," "The Chinese Disks," "The Dark Death," "The Third Skull," "The Black Master," "The Voodoo Master," "The Third Shadow," "The Circle of Death," "The Sledge Hammer Crimes," "The Golden Masks," "The Ghost Murders," "Hills of Death," "The Hand," "The Racket's King," "The Green Hoods," "The Crime Ray," "The Getaway Ring," "Masters of Death," and "The Crystal Skull."

For the first half of The Shadow's tenure in the pulps, his past and identity are ambiguous, supposedly an intentional decision on Gibson's part. In The Living Shadow, a thug claims to have seen The Shadow's face, and thought he saw "a piece of white that looked like a bandage." In "The Black Master" and "The Shadow's Shadow," the villains both see The Shadow's true face, and they both remark that The Shadow is a man of many faces with no face of his own. It was not until the August 1937 issue, "The Shadow Unmasks," that The Shadow's real name is revealed.

Kent Allard appears as himself in at least twenty-eight Shadow novels: "The Shadow Unmasks," "The Yellow Band," "Death Turrets," "The Sealed Box," "The Crystal Buddha," "Hills of Death," "The Murder Master," "The Golden Pagoda," "Face of Doom," "The Racket's King," "Murder for Sale," "Death Jewels," "The Green Hoods," "Crime Over Boston," "The Dead Who Lived," "Shadow Over Alcatraz," "Double Death," "Silver Skull," "The Prince of Evil," "Masters of Death," "Xitli, God of Fire," "The Green Terror," "The Wasp Returns," "The White Column," "Dictator of Crime," "Crime out of Mind," "Crime Over Casco," and "Dead Man's Chest."

In the radio drama, the Allard secret identity was dropped for simplicity's sake. On the radio, The Shadow was only Lamont Cranston; he had no other aliases or disguises.

Supporting characters[link]

The Shadow has a network of agents who assist him in his war on crime. These include:

• Harry Vincent, an operative whose life he saved when Vincent tried to commit suicide.
• Moses "Moe" Shrevnitz, aka "Shrevvy," a cab driver who doubles as his chauffeur.
• Margo Lane, a socialite created for the radio drama and later introduced into the pulps.
• Clyde Burke, a newspaper reporter.
• Burbank, a radio operator who maintains contact between The Shadow and his agents.
• Cliff Marsland, a wrongly convicted ex-con who infiltrates gangs using his crooked reputation.
• Dr. Rupert Sayre, The Shadow's personal physician.
• Jericho Druke, a giant, immensely strong black man.
• Slade Farrow, who works with The Shadow to rehabilitate criminals.
• Miles Crofton, who sometimes pilots The Shadow's autogyro.
• Rutledge Mann, a stock-broker who collects information.
• Claude Fellows, the only agent of The Shadow ever to be killed, which he was in Gangdom's Doom, 1931.
• Hawkeye, a reformed underworld snoop who trails gangsters and other criminals.
• Myra Reldon, a female operative who uses the alias of Ming Dwan when in Chinatown.
• Dr. Roy Tam, The Shadow's contact man in New York's Chinatown.

Though initially wanted by the police, The Shadow also works with and through them; notably gleaning information from his many chats with Commissioners Ralph Weston and Wainright Barth (who is also Cranston's uncle), while at the Cobalt Club. Weston believes that Cranston is merely a rich playboy who dabbles in detective work. Another police contact is Detective Joe Cardona, a key character in many Shadow novels.

In contrast to the pulps, The Shadow radio drama limited the cast of major characters to The Shadow, Commissioner Weston, and Margo Lane, the last of whom was created specifically for the radio series, as it was believed the abundance of agents would make it difficult to distinguish between characters.^[8] Clyde Burke and Moe Shrevnitz (identified only as "Shrevvy") made occasional appearances, but not as agents of The Shadow. Shrevvy was merely an acquaintance of Cranston and Lane, and occasionally Cranston's chauffeur.

Enemies[link]

The Shadow also faces a wide variety of enemies, ranging from kingpins and mad scientists to international spies and "super-villains," many of whom were predecessors to the rogues's galleries of comic super-heroes. Among The Shadow's recurring foes are Shiwan Khan (The Golden Master, Shiwan Khan Returns, and The Invincible Shiwan Khan)--who appears in the feature film portrayed by John Lone--The Voodoo Master (The Voodoo Master, The City of Doom, and Voodoo Trail), The Prince of Evil (The Prince of Evil, The Murder Genius, The Man Who Died Twice, and The Devil's Paymaster, all written by Theodore Tinsley), and The Wasp (The Wasp and The Wasp Returns).

The series also featured a myriad of one-shot villains, including The Red Envoy, The Death Giver, Gray Fist, The Black Dragon, Silver Skull, The Red Blot, The Black Falcon, The Cobra, Zemba, The Black Master, Five-Face, The Gray Ghost, and Dr. Z.

The Shadow also battles collectives of criminals, such as The Silent Seven, The Hand, The Salamanders, and The Hydra.

Radio program[link]

Orson Welles was the voice of The Shadow from September 1937 to October 1938. He was succeeded by Bill Johnstone.

In early 1930, Street & Smith Publications hired David Chrisman and Bill Sweets to adapt the Detective Story Magazine to radio format. Chrisman and Sweets felt the program should be introduced by a mysterious storyteller. A young scriptwriter, Harry Charlot, suggested the name of "The Shadow."^[4] Thus, "The Shadow" premiered over CBS airwaves on July 31, 1930,^[1] as the host of the Detective Story Hour,^[5] narrating "tales of mystery and suspense from the pages of the premier detective fiction magazine."^[5] The narrator was first voiced by James LaCurto,^[5] but became a national sensation when radio veteran Frank Readick, Jr. assumed the role and gave it "a hauntingly sibilant quality that thrilled radio listeners."^[5]

Early years[link]

Following a brief tenure as narrator of Street & Smith's Detective Story Hour, "The Shadow" character was used to host segments of The Blue Coal Radio Revue, playing on Sundays at 5:30 p.m. Eastern Standard Time. This marked the beginning of a long association between the radio persona and sponsor Blue Coal.

While functioning as a narrator of The Blue Coal Radio Revue, the character was recycled by Street & Smith in October 1931, to oddly serve as the storyteller of Love Story Hour.

In October 1932, the radio persona temporarily moved to NBC. Frank Readick again played the role of the sinister-voiced host on Mondays and Wednesdays, both at 6:30 p.m., with LaCurto taking occasional turns as the title character.

Readick returned as The Shadow to host a final CBS mystery anthology that fall. The series disappeared from CBS airwaves on March 27, 1935, due to Street & Smith's insistence that the radio storyteller be completely replaced by the master crime-fighter described in Walter B. Gibson's ongoing pulps.

Radio drama[link]

Street & Smith entered into a new broadcasting agreement with Blue Coal in 1937, and that summer Gibson teamed with scriptwriter Edward Hale Bierstadt to develop the new series. As such, The Shadow returned to network airwaves on September 26, 1937, over the new Mutual Broadcasting System. Thus began the "official" radio drama that many Shadow fans know and love, with 22-year-old Orson Welles starring as Lamont Cranston, a "wealthy young man about town." Once The Shadow joined Mutual as a half-hour series on Sunday evenings, the program did not leave the air until December 26, 1954.

Welles did not speak the signature line of "Who knows what evil lurks in the hearts of men?". Instead, Readick did, using a water glass next to his mouth for the echo effect. The famous catch phrase was accompanied by the strains of an excerpt from Opus 31 of the Camille Saint-Saëns classical composition, Le Rouet d'Omphale.

After Welles departed the show in 1938, Bill Johnstone was chosen to replace him and voiced the character for five seasons. Following Johnstone's departure, The Shadow was portrayed by such actors as Bret Morrison (the longest tenure, with 10 years in two separate runs), John Archer, and Steve Courtleigh.

The Shadow also inspired another radio hit, The Whistler, whose protagonist likewise knows "many things, for I walk by night. I know many strange tales, many secrets hidden in the hearts of men and women who have stepped into the shadows. Yes, I know the nameless terrors of which they dare not speak".

Margo Lane[link]

The radio drama also introduced female characters into The Shadow's realm, most notably Margo Lane (played by Agnes Moorehead, among others) as Cranston's love interest, crime-solving partner and the only person who knows his identity as The Shadow.^[9] Four years later, the character was introduced into the pulp novels. Her sudden, unexplained appearance in the pulps annoyed readers and generated a flurry of hate mail printed in The Shadow Magazine's letters page.^[9]

Lane was described as Cranston's "friend and companion" in later episodes, although the exact nature of their relationship was unclear. In the early scripts of the radio drama the character's name was spelled "Margot." The name itself was originally inspired by Margot Stevenson,^[9] the Broadway ingénue who would later be chosen to voice Lane opposite Welles' Shadow during "the 1938 Goodrich summer season of the radio drama."^[10] In the 1994 film in which Penelope Ann Miller portrayed the character, she is characterized as a telepath.

Comic strips, comic books, and graphic novels[link]

The Shadow has been adapted for the comics quite a few times; his first appearance was on June 17, 1940 as a syndicated daily newspaper comic strip offered by the Ledger Syndicate. The strip's story continuity was written by Walter B. Gibson, with plot lines adapted from the Shadow pulps, and the strip was illustrated by Vernon Greene. Due to pulp paper shortages and the growing amount of space required for war news from the European and Pacific fronts, the strip was canceled June 13, 1942. The Shadow daily was collected decades later in two comic book series from two different publishers (see below), first in 1988 and again in 1999.

To both cross-promote The Shadow and attract a younger audience to their other pulp magazines, Street & Smith published 101 issues of the comic book Shadow Comics from Vol. 1, #1 - Vol. 9, #5 (March 1940 - Sept. 1949).^[11] A Shadow story led off each issue, with the remainder of the stories being strips based on other Street & Smith pulp heroes.

In Mad #4 (April–May 1953), The Shadow was spoofed by Harvey Kurtzman and Will Elder. Their character was called the Shadow' (with an apostrophe), which is short for Lamont Shadowskeedeeboomboom. In this satire, Margo Pain gets Shad, as she calls him, into various predicaments, including fights with gangsters and a piano falling on him from above. At the conclusion of the tale, after Margo is tricked into going inside an outhouse surrounded by wired-up dynamite, Shad is seen gleefully pushing down a detonator's plunger.

During the superhero revivial of the 1960s, Archie Comics published an eight-issue series, The Shadow (Aug. 1964 - Sept. 1965), under the company's Mighty Comics imprint. In the first issue, The Shadow depicted was loosely based on the radio version, but with blond hair. In issue #2 (Sept. 1964), the character was transformed into a campy, heavily muscled, green and blue costume-wearing superhero by writer Robert Bernstein (Jerry Siegel) and artist John Rosenberger.^[12]

During the mid-1970s, DC Comics published an "atmospheric interpretation" of the character by writer Dennis O'Neil and artist Michael Kaluta^[13] in a 12-issue series (Nov. 1973 - Sept. 1975). Kaluta drew issues 1-4 and 6 and was followed by Frank Robbins and then E. R. Cruz. Faithful to both the pulp-magazine and radio-drama character, the series guest-starred fellow pulp fiction hero The Avenger in issue #11.^[14] The Shadow also appeared in DC's Batman #253 (Nov. 1973), in which Batman teams with an aging Shadow and calls the famous crime fighter his "greatest inspiration". In Batman #259 (Dec. 1974), Batman again meets The Shadow, and we learn The Shadow saved Bruce Wayne's life when the future Batman was a boy.

The Shadow is also referenced in DC's Detective Comics #446 (1975), page 4, panel 2: Batman, out of costume and in disguise as an older night janitor, makes a crime fighting acknowledgement, in a (thought balloon) to the Shadow.

In 1986, another DC incarnation was created by Howard Chaykin. This four issue mini-series, also collected as a one-shot graphic novel (Shadow: Blood and Judgement), brought The Shadow into modern-day New York. While initially successful,^[15] this version proved unpopular with traditional Shadow fans^[16] because it depicted The Shadow using Uzi submachine guns and rocket launchers, as well as featuring a strong strain of black comedy and extreme violence throughout.^[17]

The Shadow, set in our modern era, was continued the following year, in 1987, as a monthly DC comics series by writer Andy Helfer (editor of the mini-series), and was drawn primarily by artists Bill Sienkiewicz (issues 1-6) and Kyle Baker (issues 8-19 and two Shadow Annuals).

In 1988, O'Neil and Kaluta, with inker Russ Heath, returned to The Shadow with the Marvel Comics graphic novel The Shadow 1941: Hitler's Astrologer, set during World War II. This one-shot appeared in both hardcover and trade paperback editions.

The Vernon Greene/Walter Gibson Shadow newspaper comic strip from the early 1940s was finally collected by Malibu Graphics (Malibu Comics) under their Eternity Comics imprint, beginning with the first issue of Crime Classics dated July, 1988. Each cover was illustrated by Greene and colored by one of Eternity's colorists. A total of 13 issues appeared featuring just the black-and-white daily until the final issue, dated November, 1989. Some of the Shadow story lines were contained in one issue, while others were continued over into the next. When a Shadow story ended, another tale would begin in the same issue. This back-to-back format continued until the final 13th issue, when the strip story lines ended.

Dave Stevens' nostalgic comics series The Rocketeer contains a great number of pop culture references to the 1930s. Various characters from the Shadow pulps make appearances in the story line published in the Rocketeer Adventure Magazine, including The Shadow's famous alter ego Lamont Cranston. Two issues were published by Comico Comics in 1988 and 1989, but the third and final installment did not appear until years later, finally appearing in 1995 from Dark Horse Comics. All three issues were then collected by Dark Horse into a slick trade paperback titled The Rocketeer: Cliff's New York Adventure (ISBN 1-56971-092-9).

From 1989 to 1992, DC published a new Shadow series, The Shadow Strikes, written by Gerard Jones and Eduardo Barreto. This series was set in the 1930s and returned The Shadow to his pulp origins. During its run, it featured The Shadow's first team-up with Doc Savage, another very popular hero of the pulp magazine era. Both characters appeared together in a four-issue story line that crossed back and forth between each character's DC comic series. "The Shadow Strikes" often led The Shadow into encounters with well-known celebrities of the 1930s, such as Albert Einstein, Amelia Earhart, Charles Lindbergh, union organizer John L. Lewis, and Chicago gangsters Frank Nitti and Jake Guzik. In issue #7, The Shadow meets a radio announcer named Grover Mills — a character based on the young Orson Welles — who has been impersonating The Shadow on the radio. The character's name is taken from Grover's Mill, New Jersey, the name of the small town where the Martians land in Welles' famous 1938 radio broadcast of The War of the Worlds. When Shadow rights holder Conde Nast increased its licensing fee, DC concluded the series after 31 issues and one Annual; it became the longest running Shadow comic series since Street and Smith's original 1940s series.

During the early-to-mid-1990s, Dark Horse Comics acquired the comics rights to the Shadow from Conde Nast. It published the Shadow miniseries In The Coils of Leviathan (four issues) in 1993, and Hell's Heat Wave (three issues) in 1995. In the Coils of the Leviathan was later collected and issued by Dark Horse in 1994 as a trade paperback graphic novel. Both series were written by Joel Goss and Michael Kaluta, and drawn by Gary Gianni. A one-shot Shadow issue The Shadow and the Mysterious Three was also published by Dark Horse in 1994, again written by Joel Goss and Michael Kaluta, with Stan Manoukian and Vince Roucher taking over the illustration duties but working over Kaluta's layouts. A comics adaptation of the 1994 film The Shadow was published in two issues by Dark Horse as part of the movie's merchandising campaign. The script was by Goss and Kaluta and once again drawn from cover to cover by Kaluta. It was collected and published in England by Boxtree as a graphic novel tie-in for the film's British release. Emulating DC's earlier team-up, Dark Horse also published a two-issue mini-series in 1995 called The Shadow and Doc Savage. It was written by Steve Vance, and illustrated once again by Manoukian and Roucher. Of special note, both issues' covers were drawn by Rocketeer creator Dave Stevens. The final Dark Horse Shadow team-up was published in 1995. It was a single issue of Ghost and the Shadow, written by Doug Moench, pencilled by H. M. Baker, and inked by Bernard Kolle.

The Shadow made an uncredited cameo appearance in issue #2 of DC's 1996 four issue mini-series Kingdom Come. Those four issues were then collected into a single graphic novel in 1997. The Shadow appears in the nightclub scene standing in the background next to The Question and Rorschach.

The early 1940s Shadow newspaper daily strip was again put back into print, this time by Avalon Communications under their ACG Classix imprint. The Shadow daily began appearing in the first issue of Pulp Action comics. It carries no monthly date or issue number on the cover, only a 1999 copyright and a "Pulp Action #1" notation at the bottom of the inside cover. Each issue's cover is a colorized, partial comics panel blow-up, taken from one of the reprinted strips. The eighth issue uses for its cover a partial Shadow serial black-and-white movie still, with several hand-drawn alterations added. The first issue of Pulp Action is devoted entirely to reprinting the Shadow daily, but subsequent issues began offering back-up, non-Shadow stories of various page lengths in every issue. These Shadow strip reprints stopped with Pulp Action's eighth issue, never completing the daily's story lines; that last issue carries a 2000 copyright date.

Writer Garth Ennis signing copies of Dynamite Entertainment's The Shadow (volume 5) #1 at an April 19, 2012 signing at Midtown Comics Downtown in Manhattan.

In August 2011 Newsarama reported that Dynamite Entertainment had licensed the Shadow from Conde Nast and would be developing a new comic book series around the character.^[18] The series, which is written by Garth Ennis and illustrated by Aaron Campbell, debuted on April 19, 2012 in comics shops and was also available for sale through various website sales outlets like eBay and Amazon.com; the Ennis story arc, set during the Shadow's original 1930s time period, will be featured in the first six issues. The first Dynamite issue was published with four different color covers and 8 special variants; including Retailer Incentive versions, regional comic shop specials, and even two offering limited, hand-drawn original cover sketches. This first issue was drawn by artists Alex Ross, Jae Lee, Howard Chaykin, and John Cassaday.^[19]

Films[link]

The character has been adapted for several motion pictures.

[edit] The Shadow Strikes (1937)

The film The Shadow Strikes was released in 1937, starring Rod La Rocque in the title role. Lamont Cranston assumes the secret identity of "The Shadow" in order to thwart an attempted robbery at an attorney's office. Both The Shadow Strikes (1937) and its sequel, International Crime (1938), were released by Grand National Pictures.

[edit] International Crime (1938)

La Rocque returned the following year in International Crime. In this version, reporter Lamont Cranston is an amateur criminologist and detective who uses the name of "The Shadow" as a radio gimmick. Thomas Jackson portrayed Police Commissioner Weston, and Astrid Allwyn was cast as Phoebe Lane, Cranston's assistant.

[edit] The Shadow (1940)

A 15-chapter serial produced by Columbia Studios starring Victor Jory premiered in 1940. The Black Tiger is a criminal mastermind who has been sabotaging rail lines and factories across the United States, and Lamont Cranston must become his shadowy alter ego to uncover the fiend and halt his schemes.

[edit] The Shadow Returns (1946)

Low-budget motion picture studio Monogram produced a trio of films in 1946 starring Kane Richmond: The Shadow Returns, Behind the Mask and The Missing Lady. Richmond's Shadow wore a black face-mask similar to the type worn by the serial hero The Masked Marvel instead of his signature red scarf.

[edit] The Shadow (1994)

In 1994 the character was adapted once again into a feature film, The Shadow, starring Alec Baldwin as Lamont Cranston, alongside Penelope Ann Miller as Margo Lane. As the film opens, Cranston has become the evil and corrupt Ying-Ko (literally "Eagle's Beak"), a brutal warlord and opium smuggler in early 1930s Mongolia. Ying Ko is kidnapped by agents of the mysterious tulku, who then begins to reform the warlord using the psychic power of his evolved mind to restore Cranston's humanity. The tulku also teaches him the ability to "cloud men's minds" using psychic power in order to fight evil in the world. Cranston eventually returns to his native New York City and takes up the guise of the mysterious Shadow, in payment to humanity for his past evil misdeeds: "Who knows what evil lurks in the hearts of men? The Shadow knows..."

His nemesis in the film is adapted from the pulp series' long-running Asian villain (and for the film, a fellow telepath), the evil Shiwan Khan (John Lone), the last descendant of Genghis Khan. He seeks to finish his ancestors' legacy of conquering the world by first destroying New York City, using a newly developed atomic bomb, in a show of his power. Khan nearly succeeds but is thwarted by the Shadow in a final psychic duel of death: Cranston imposes his Will and defeats Khan during a telekinetically enhanced battle in a mirrored room, which suddenly explodes into thousands of flying mirror fragments. Focusing his mind's telekinatic power, Cranston flips a flying piece of jagged mirror shard midair, and hurls it directly at Khan's forehead; this doesn't kill him, it only renders Khan unconscious. To both save the warlord and the world, the Shadow has arranged with one of his operatives, an administrative doctor at an unidentified New York asylum for the criminally insane, to have Khan locked away in a padded cell. Khan's mirror shard-damaged frontal lobe, which controlled his powers, has been surgically removed; he is now under the Shadow's control forever.

The film combined elements from the Shadow pulp novels and comic books with the aforementioned ability to cloud minds, described only on the radio show. The Shadow wears a large, red-lined black cloak, a long, red mouth and chin scarf, a black trench coat, and a wide-brimmed fedora; he is armed with dual .45 semi-automatic pistols, as in the pulps and the comics. The film also displays Cranston's ability to conjure a false face whenever he is in his Shadow guise, in keeping with his physical portrayal in the novels and the comics.

Upcoming film[link]

On December 11, 2006, the website SuperHero Hype reported that director Sam Raimi and Michael Uslan will co-produce a new Shadow film for Columbia Pictures.^[20] After failing to gain the rights in the late 1980s, Raimi instead created an original character for the 1990 feature film, Darkman.

On October 16, 2007, Raimi stated that: "I don't have any news on 'The Shadow' at this time, except that the company that I have with Josh Donen, my producing partner, we've got the rights to 'The Shadow.' I love the character very much and we're trying to work on a story that'll do justice to the character."^[21]

On January 29, 2010, it was reported^{[by whom?]} that Sam Raimi was searching for a new project after it was announced that the Spider-Man movie franchise would be rebooted without him. The Shadow was said to be at the top of his list. Recently, it was incorrectly rumoured that David Slade will direct the upcoming film, with a release date of 2012.

On Thursday, August 5, 2010, it was reported that Quentin Tarantino - who was attached as a co-writer for the script - had been attached to direct as well.^[22] However this would later be denied by an official representative of Tarantino who informed MTV News that "There is no truth to this story"^[23]

TV series[link]

Two attempts were made to make a television series based on the character. The first in 1954 was called The Shadow, starring Tom Helmore as Lamont Cranston.

The second attempt in 1958 was called The Invisible Avenger, which compiled the first two unaired episodes and was released theatrically instead. This film was later re-released in 1962 as Bourbon Street Shadows, with additional footage meant to appeal to "adult" audiences.^{[citation needed]} Starring Richard Derr as The Shadow, The Invisible Avenger centers upon Lamont Cranston investigating the murder of a New Orleans bandleader. The film is notable as the second directorial effort of James Wong Howe (one of the two episodes only).

Influence on superheroes[link]

Characters such as Batman^[24] and the Green Hornet resemble Lamont Cranston's alter ego. Both characters operate mostly by night, and the Green Hornet in particular operates outside the law, insinuating himself into criminal plots in order to put an end to the activities of master criminals. But whereas the Shadow carries a real gun, the Green Hornet carries only a lightweight pistol that fires non-lethal gas.

When Bob Kane and Bill Finger first conceived of the "Bat-Man", Finger suggested they pattern the character after pulp mystery men such as the Shadow.^[25] Finger then used "Partners of Peril"^[26]—a Shadow pulp written by Theodore Tinsley—as the basis for Batman's debut story, "The Case of the Chemical Syndicate."^[27] Finger later publicly acknowledged that "my first Batman script was a take-off on a Shadow story"^[28] and that "Batman was originally written in the style of the pulps."^[29] This influence was further evident with Batman showing little remorse over killing or maiming criminals and was not above using firearms.^[29]

Alan Moore has credited The Shadow as one of the key influences for the creation of V, the title character in his DC Comics miniseries V for Vendetta,^[30][31] that later became a big-budget film release in 2005 from Warner Bros.

See also[link]

Novels portal

• Condé Nast Publications, owner of The Shadow intellectual property
• Doctor Sax
• List of The Shadow episodes

Notes[link]

References[link]

• Cox, J. Randolph. Man of Magic & Mystery, A Guide to the Work of Walter B. Gibson, Scarecrow Press, 1998. ISBN 0-8108-2192-3. (Comprehensive history and career bibliography of Gibson's works.)
• Eisgruber, Jr., Frank. Gangland's Doom, The Shadow of the Pulps, Starmont House, 1985. ISBN 0-930261-74-7.
• Gibson, Walter B., Tollin, Anthony. The Shadow Scrapbook, Harcourt Brace Jovanovich, 1979. ISBN 0-15-681475-7. (Comprehensive history of The Shadow in all media forms up through the late 1970s.)
• Goulart, Ron. Cheap Thrills: An Informal History of the Pulp Magazine, Arlington House, 1972. ISBN 08700017228.
• Murray, Will. Duende History of the Shadow Magazine, Odyssey Publications, 1980. ISBN 0-933752-21-0.
• Overstreet, Robert. The Official Overstreet Comic Book Price Guide, 35th Edition., House of Collectibles, 2005. ISBN 0-375-72107-X. (Lists all Shadow comics published to date.)
• Sampson, Robert. The Night Master, Pulp Press, 1982. ISBN 0-934498-08-3.
• Shimfield, Thomas J. Walter B. Gibson and The Shadow. McFarland & Company, 2003. ISBN 0-7864-1466-9. (Comprehensive Walter Gibson biography with an emphasis on The Shadow.)
• Steranko, James. Steranko's History of the Comics, Vol. 1, Supergraphics, 1970. No ISBN.
• Steranko, James, (1972), Steranko's History of the Comics, Vol. 2, Supergraphics, 1972. No ISBN.
• Steranko, James. Unseen Shadows, Supergraphics, 1978. No ISBN. (Collection of Steranko's detailed black-and-white cover roughs, including alternate/unused versions, done for the Shadow novel reprints from Pyramid Books and Jove/HBJ.)
• Van Hise, James. The Serial Adventures of the Shadow, Pioneer Books, 1989. No ISBN.

External links[link]

• The Shadow: Master of Darkness
• The Shadow in Review
• The Shadow at the Internet Movie Database
• The Shadow at the Comic Book DB

Milton Friedman

Chicago School of Economics
Born	(1912-07-31)July 31, 1912 Brooklyn, New York
Died	November 16, 2006(2006-11-16) (aged 94) San Francisco, California
Nationality	American
Institution	Hoover Institution (1977–2006) University of Chicago (1946–77) Columbia University (1937–41, 1943–45, 1964–65) NBER (1937–40)
Field	Economics
Alma mater	Columbia University (Ph.D.), 1946, University of Chicago (M.A.), 1933 Rutgers University (B.A.), (1932)
Opposed	John Maynard Keynes, John Kenneth Galbraith, Murray Rothbard
Influences	Adam Smith, Irving Fisher, Frank Knight, Murray Rothbard, Jacob Viner, Harold Hotelling, Arthur Burns, Friedrich Hayek, Homer Jones, Ludwig von Mises, Henry Simons, George Stigler
Influenced	Margaret Thatcher, Alan Greenspan, David D. Friedman, Anna J. Schwartz, Ben Bernanke, Gary Becker, Thomas Sowell, Harry Markowitz, Chicago Boys, William F. Buckley, Jr., Cato Institute
Contributions	Price theory, Monetarism, applied macroeconomics, floating exchange rates, volunteer military, Permanent income hypothesis, Friedman test
Awards	John Bates Clark Medal (1951) Nobel Memorial Prize in Economics (1976) Presidential Medal of Freedom (1988) National Medal of Science (1988)
Signature

Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician, and author who taught at the University of Chicago for more than three decades. He was a recipient of the Nobel Memorial Prize in Economic Sciences, and is known for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy.^[1] As a leader of the Chicago school of economics, he influenced the research agenda of the economics profession. A survey of economists ranked Friedman as the second most popular economist of the twentieth century behind John Maynard Keynes,^[2] and The Economist described him as "the most influential economist of the second half of the 20th century…possibly of all of it."^[3]

Friedman's challenges to what he later called "naive Keynesian" (as opposed to New Keynesian) theory^[4] began with his 1950s reinterpretation of the consumption function, and he became the main advocate opposing activist Keynesian government policies.^[5] In the late 1960s he described his own approach (along with all of mainstream economics) as using "Keynesian language and apparatus" yet rejecting its "initial" conclusions.^[6] During the 1960s he promoted an alternative macroeconomic policy known as "monetarism". He theorized there existed a "natural" rate of unemployment, and argued that governments could increase employment above this rate (e.g., by increasing aggregate demand) only at the risk of causing inflation to accelerate.^[7] He argued that the Phillips curve was not stable and predicted what would come to be known as stagflation.^[8] Friedman argued that, given the existence of the Federal Reserve, a constant small expansion of the money supply was the only wise policy.^[9]