Tagi

deflation

Bernanke’s mistake on deflation

prof. Steve Keen / 10-09-2010
Debt reduction is now the real story of the American economy, just as real story behind the apparent free lunch of the last two decades was rising debt. The secret that has completely eluded Bernanke is that aggregate demand is the sum of GDP plus the change in debt. So when debt is rising demand [...]

Strong uptrend in inflation

Edward Harrison / 30-07-2010
David Rosenberg is bullish on bonds. And the reasoning for his bullishness has a lot to do with the deleveraging and excess capacity which the bursting of the credit bubble has brought into view. In this sense, his views on inflation are actually rather similar to modern monetary theory advocates. In his daily letter to investors [...]

Deflation? Are we far from it?

Edward Harrison / 26-07-2010
Wow! We see the word “Deflation” everywhere; we see it in every financial publication and hear it every time we turn on financial TV. We see that the pundits who were bearish because of runaway inflation have just recently included deflation as well as inflation to be the problem. We were talking and warning about [...]

Decline in velocity is a problem

Dr Bruce Bartlett / 13-07-2010
The Wall Street Journal reported somewhat breathlessly on June 10 that nonfinancial businesses in the U.S. are sitting on $1.84 trillion in liquid assets, or 12.6 percent of the gross domestic product (GDP). The implication is that this money could immediately be mobilized to invest and create jobs. This isn’t quite so, but excessive [...]

Euro Debt Panic Will Have Deflationary Impact Upon U.S.

Prof. Stefan Karlsson / 20-05-2010
Tim Duy discusses whether or not the European debt panic will benefit or hur the United States. His conclusion is that the crisis will do more good than harm. Duy acknowledges that one of the key effects of the panic, namely the dramatic drop in the euro’s exchange rate relative to the U.S. dollar, will hurt [...]


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