Allowing inflation in order to revive economy will backfire


Bernanke Joins King Tolerating Inflation to Revive Economy – Bloomberg.

What a myopia at the Fed’s and Bank of England! If inflation is allowed to take hold, it will force the already strapped consumers to burrow even more and since both economies depend heavily on consumption (their exports sectors have been “exported”) we will see a further slowing down of even reduction of their economies.

Are they just guessing? Where is the logic?

Advertisements