Wednesday 30 October 2013

2013-57 Now about the problems with inflation

If the inflation was raised, as Ken Rogoff suggests:
  • the FED may lose control of inflation
  • as inflation accelerates, any benefits will be swamped by "disruptive consequences of people spending money as soon as possible
  • Inflation punishes people on fixed incomes
  • It discourages lending and investment, slowing economic growth in the future

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