In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘inflationary crisis’

U.S. Needs More Inflation to Speed Recovery, Say Mankiw, Rogoff

Posted by smeddum on May 20, 2009

By Rich Miller

May 19 (Bloomberg) — What the U.S. economy may need is a dose of good old-fashioned inflation.

So say economists including Gregory Mankiw, former White House adviser, and Kenneth Rogoff, who was chief economist at the International Monetary Fund. They argue that a looser rein on inflation would make it easier for debt-strapped consumers and governments to meet their obligations. It might also help the economy by encouraging Americans to spend now rather than later when prices go up. Read the rest of this entry »

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Let the presses role: unleash hyperinflation

Posted by seumasach on November 24, 2008

 

A visit to the supermarket is all that is required to see that this isn’t a conventional deflationary crisis. Unsold stock is being being sold off but new stock is coming in at higher prices or it is not coming in at all: a whole range of stuff is simply disappearing from the shelves. It is more like a complete collapse of the market where as a result of a growing concentration of wealth in a few hands there is no one left to buy. Printing more money will help bridge the gap momentarily until prices go up further. Hence, an inflationary spiral. This is accentuated in economies reliant on imports payed for with fiat currencies, such as Britain and the USA. The fall of their currencies  automatically generates inflation. That’s why London and Washington want other central banks to devalue their currencies as well in a race to bottom which will preserve the dollar and the pounds privileged global tradeability.

Stephen King

Independent

24th november, 2008

For the Federal Reserve, the Bank of England and the world’s other leading central banks, it is time for unconventional acts of bravery. These acts are needed because the financial crisis is mutating. No longer is this a story simply about the unwillingness or inability of banks to lend. It is fast becoming a crisis of liquidation. You can see it on the high street with sudden, and aggressive, pre-Christmas sales. You can see it in the stock market, where we’re seeing renewed panic. You can see it in the property market, where prices are tumbling faster than ever before.

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