Tag Archives | inflation

Fed

Would a 3rd Round of Quantitative Easing be a Charm?

Would a 3rd Round of Fed Quantitative Easing be a charm? Matthew O’Brien, writing last week for The Atlantic, certainly feels it would be. Those who share his sentiments were disappointed when Fed Chairman Ben Bernanke in his hearing before Congress stated “monetary policy is not a panacea”, which many have interpreted as a sign…
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Economy a little flat? Whip in some inflation!

Sometimes economists make analogies to make policies coherent. I find this by line particularly appetizing, imagining Bernanke as a soufflé chef trying to keep his light dessert fluffy. According to Menzie Chinn and Jeffry Frieden, the solution is just to whip in a little inflation to keep that soufflé/economy healthy. The basic idea they convey…
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St. Louis Monetary Base

Kontra Krugman

To piggyback on nfreiling’s post, Krugman’s article makes several oversights which only muddy his analysis. First, he relies on the mainstream definition of inflation—a rise in prices. However, a more accurate definition for inflation would be “an increase in the supply of money”—something that has happened at a historically unprecedented rate if the following chart…
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Inflation

Krugman Cherry-Picks Data to Avoid Inflation Warnings

Leave it to Paul Krugman to try and invalidate Austrian economic theory with a measly 3-year inflation figure: “Austrians…were sure about what would happen as a result: There would be devastating inflation. One popular Austrian commentator who advised (Ron) Paul, Peter Schiff, even warned…of the possibility of Zimbabwe-style hyperinflation in the near future. “So here…
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