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From Save Capitalism:
I currently follow the CPI measurements for three countries, namely the US, UK and Sweden. Interestingly enough, they all came in at almost the same number for YoY numbers, in December 2009.
UK : 2.9%
US : 2.8%
Sweden : 2.7%
Is it just me, or is it rather disturbing that for three countries that are pretty much right on (or above) their CPI targets, the central interest rate are in the range of 0-0.5%? Since inflation is “back to normal”, shouldn’t the economy be back to normal as well? A-ha, you say! There’s something wrong with this equation. Could it be that the entire premise of interest rate manipulation and quantative easing is in fact just a way of changing the symptoms, and not the underlying cause? Could it be that inflation will now keep marching upward, without the economy improving to the same degree? Stag….flation?
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