tag:blogger.com,1999:blog-7439628176985419293.post7738358602804654373..comments2023-11-02T08:28:40.590-04:00Comments on Twenty-Cent Paradigms: Time to Cash in the Fed's "Credibility"?Bill Chttp://www.blogger.com/profile/01081319025032071808noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7439628176985419293.post-16659317623944681432011-08-10T05:05:25.354-04:002011-08-10T05:05:25.354-04:00Nice article, thanks for the information.Nice article, thanks for the information.rental mobilhttp://griyamobilkita.webs.comnoreply@blogger.comtag:blogger.com,1999:blog-7439628176985419293.post-7850065191405321552011-08-08T07:36:45.642-04:002011-08-08T07:36:45.642-04:00Not sure I agree with Rogoff, but I'm not sure...Not sure I agree with Rogoff, but I'm not sure I don't. That would reduce the real value of debt, but it would also have a lasting effect on expectations. Its certainly interesting to hear such suggestions from the former chief economist of the IMF, of all people.Bill Chttps://www.blogger.com/profile/01081319025032071808noreply@blogger.comtag:blogger.com,1999:blog-7439628176985419293.post-33884583197139231792011-08-07T17:35:45.997-04:002011-08-07T17:35:45.997-04:00I am unimpressed.
If we didn't have inflatio...<i>I</i> am unimpressed. <br /><br />If we didn't have inflation all the while we were accumulating debt, Rogoff could be right. But we did. So there must be something wrong with the notion of inflating <i>more</i> to solve the debt problem. <br /><br />The natural solution, now, is deflation. But why not split the difference and reduce debt while at least aiming to keep prices stable? <br /><br />We don't have any policies that encourage the reduction of debt. Such policies should be our primary weapon against inflation when times are good. But we prefer to suppress inflation by suppressing growth.<br /><br />Anyway, the Fed has been trying to inflate without success, I think because the economy is not growing anywhere near fast enough for that to work. But if it ever does grow enough that easy money again causes inflation, private sector debt will once again be growing faster than all else, making the problem worse.<br /><br />Bill, you as an economist should be outraged that anyone is even suggesting to use inflation as an economic policy tool. <br /><br />ArtThe Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com