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by imtringued
1953 days ago
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>As for inflation, I’m guessing the exact opposite argument to yours was being made in the 80s. By definition, inflation is what happens when demand exceeds supply. If the fed keeps flooding the market with cheap credit the expectation is that the money is invested into more production, either by machines or by foreign labor (i.e. in China). Prices stop growing because supply outstrips demand. That's why the fed is failing to create sufficient inflation. Supply side stimulus is causing the opposite effect and at the same time it is leading to an asset bubble. |
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