The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
By encouraging Americans to believe prices will start rising at a faster pace, the Fed would reduce inflation-adjusted interest rates and stimulate the economy.
Wait - what? Inflation goes up, real purchasing power decreases, people borrow more from bankrupt banks that aren't lending to make up the gap, the economy grows?
Is this a plan or a comedy sketch?
A structural imbalance of the external accounts is part of the story in all the hyperinflationary episodes that I can bring to mind, with notable examples from the Confederate States of America in the 1860's through the Wiemar Republic, through Brazil in the 1970's, through Argentina at the turn of this century.
I don't think we can predict what the US finance industry will look like at the end (although I'd be willing to bet Goldman sachs do well) but I really doubt they're gonna be in any position to protect the dollar at the end of it.
keep to the Fen Causeway
Where's the downside?
It is rightly acknowledged that people of faith have no monopoly of virtue
- Queen Elizabeth II
by A swedish kind of death - Sep 15 1 comment
by ChrisCook - Sep 14 41 comments
by Frank Schnittger - Sep 11 129 comments
by Luis de Sousa - Sep 9 60 comments
by Crazy Horse - Sep 6 10 comments
by Migeru - Sep 4 38 comments
by Metatone - Aug 30 5 comments
by gmoke - Aug 26
by A swedish kind of death - Sep 151 comment
by ChrisCook - Sep 1441 comments
by Frank Schnittger - Sep 11129 comments
by Luis de Sousa - Sep 960 comments
by Crazy Horse - Sep 610 comments
by Migeru - Sep 438 comments
by Metatone - Aug 305 comments
by Xavier in Paris - Aug 293 comments
by gmoke - Aug 26
by Metatone - Aug 227 comments
by eurogreen - Aug 2133 comments
by afew - Aug 1965 comments