Continuing:
http://competitivemarket.blogspot.com/2009/06/inflation-as-boogeyman.html
If you were seriously concerned about inflation caused by the printing of money, you should be more concerned about this:
http://www.federalreserve.gov/releases/h3/hist/h3hist5.htm
In this report the Federal Reserve records the "Monetary Base", ie total money outstanding. In June 2008, this figure stood at about $.8 trillion. In June 2009, this number is approaching 1.8 trillion.
The Federal Reserve has more than doubled the money outstanding over the last year. It already happened. Stop worrying about what Obama's budget might do to the money supply 10 years from now.
Did you see the inflation?
http://www20.wolframalpha.com/input/?i=cpi
Dead rats and dopamine - a new publication
9 months ago
There a couple problems with his argument , but a couple of points, I am not sure if the author understands the defense or knowledge of those points.
ReplyDeleteFirst, as the nytimes has reported Obama's plain, why because this is not ordinary times, and people are saving money, and the banks are not necessarily lending money- they are but more conservatively, in fairness to jp morgan's lending over $2 billion a day, however financial institutions are not lending for a lot of big/more riskier projects.
This if the treasury lends money or the reserve, and the money is not being circulated, no seen inflation, I am not sure if the author points that out.
Americans are saving money to and limiting circulation, what a lot of fellow economicist are concerned about is that if the economy picks up again inflation may occur rapidly or fears of inflation with limited economic growth may occur, obama however wants to limit dependence on fossil fuels, and reform things like health care, which may limit inflationary pressures.
I really think we should worry about inflation, inflation however may not be such a bad thing, if its low and stable and stimuluts consumer spending, economic development without the typical "boom and bust".
Not sure what the authors position is on this topic. Perhaps leigh can chime in.