Comments on: Is Higher Inflation Part of the Answer? http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/ Wed, 08 Sep 2010 15:03:58 +0000 http://wordpress.org/?v=2.6.3 By: Ronnie O'Toole http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36974 Ronnie O'Toole Mon, 22 Feb 2010 16:32:03 +0000 http://www.irisheconomy.ie/?p=5719#comment-36974 He makes the interesting point that the impact of active fiscal measures has been "disappointing". If you take as an up to date summary the yoy volume retail drop in Ireland (large fiscal retrenchment, -3.7%) vs eurozone average (large fiscal stimulus, -2.0%), then it is clear that he has a point. He makes the interesting point that the impact of active fiscal measures has been “disappointing”. If you take as an up to date summary the yoy volume retail drop in Ireland (large fiscal retrenchment, -3.7%) vs eurozone average (large fiscal stimulus, -2.0%), then it is clear that he has a point.

]]> By: Pat Donnelly http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36923 Pat Donnelly Mon, 22 Feb 2010 11:47:54 +0000 http://www.irisheconomy.ie/?p=5719#comment-36923 http://www.safehaven.com/article-15847.htm Desperate times ......... http://www.safehaven.com/article-15847.htm
Desperate times ………

]]> By: Pat Donnelly http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36897 Pat Donnelly Mon, 22 Feb 2010 09:35:32 +0000 http://www.irisheconomy.ie/?p=5719#comment-36897 Inflation is all that a kleptocracy knows. Without it, too many rent seekers end up having to work and it becomes quite obvious that much of what governments must do is in fact a waste of their time and our money. Deflation is natural and good! It reflects the increasing purchasing power of money: that store of wealth achieved by past work. Inflation is how everyone in the scam steals that past work from each of us! They devalue it. Then they share it out to "everyone". As an emergency measure it makes sense, but these guys have made it into a kleptocracy. It can never be a permanent measure! Oxymoron alert! I think therefore that inflation has NO place in any economy! Inflation is all that a kleptocracy knows. Without it, too many rent seekers end up having to work and it becomes quite obvious that much of what governments must do is in fact a waste of their time and our money.

Deflation is natural and good! It reflects the increasing purchasing power of money: that store of wealth achieved by past work. Inflation is how everyone in the scam steals that past work from each of us! They devalue it. Then they share it out to “everyone”. As an emergency measure it makes sense, but these guys have made it into a kleptocracy. It can never be a permanent measure! Oxymoron alert!

I think therefore that inflation has NO place in any economy!

]]> By: Wow http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36896 Wow Mon, 22 Feb 2010 09:32:16 +0000 http://www.irisheconomy.ie/?p=5719#comment-36896 Munchau is much referenced especially on the euro intelligence bulletins. Is he very well regarded amongst the financial/economcis world as authoritative or is he more know for thought provoking and reasonably sound commentary Munchau is much referenced especially on the euro intelligence bulletins.

Is he very well regarded amongst the financial/economcis world as authoritative or is he more know for thought provoking and reasonably sound commentary

]]> By: Kevin O’Rourke http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36894 Kevin O’Rourke Mon, 22 Feb 2010 09:26:48 +0000 http://www.irisheconomy.ie/?p=5719#comment-36894 One of Wolfgang's points is that the Germans will never wear a higher inflation rate. I guess he is probably right. But his article can be usefully read in conjunction with another one of his recent pieces: http://www.eurointelligence.com/article.581+M5b5c75b9b67.0.html EP*/P is out of line with fundamentals. Given that E is fixed, it can adjust through core inflation and/or peripheral deflation. *If* political constraints mean that the core will not inflate, and that the periphery (or at least Spain) will not deflate, then the eurozone is in trouble. And even if the entire periphery were willing to deflate, a system which imposed asymmetric adjustment in this manner, and had in consequence a deflationary bias, would begin to look like other past monetary experiments that are now history. One of Wolfgang’s points is that the Germans will never wear a higher inflation rate. I guess he is probably right. But his article can be usefully read in conjunction with another one of his recent pieces:

http://www.eurointelligence.com/article.581+M5b5c75b9b67.0.html

EP*/P is out of line with fundamentals. Given that E is fixed, it can adjust through core inflation and/or peripheral deflation. *If* political constraints mean that the core will not inflate, and that the periphery (or at least Spain) will not deflate, then the eurozone is in trouble. And even if the entire periphery were willing to deflate, a system which imposed asymmetric adjustment in this manner, and had in consequence a deflationary bias, would begin to look like other past monetary experiments that are now history.

]]> By: Aiman http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36861 Aiman Sun, 21 Feb 2010 22:50:19 +0000 http://www.irisheconomy.ie/?p=5719#comment-36861 That said, it's an interesting view on CDS. I nearly said "on the CDS market", but that would be over-dignification of an opaque bucketshop. That said, it’s an interesting view on CDS. I nearly said “on the CDS market”, but that would be over-dignification of an opaque bucketshop.

]]> By: LorcanRK http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36853 LorcanRK Sun, 21 Feb 2010 21:09:42 +0000 http://www.irisheconomy.ie/?p=5719#comment-36853 @Philip, that links to George Soros' article in the FT. The Manchau article is here http://www.ft.com/cms/s/0/9776aeb0-1ef2-11df-9584-00144feab49a.html @Philip, that links to George Soros’ article in the FT.

The Manchau article is here http://www.ft.com/cms/s/0/9776aeb0-1ef2-11df-9584-00144feab49a.html

]]> By: barratree http://www.irisheconomy.ie/index.php/2010/02/21/is-higher-inflation-part-of-the-answer/#comment-36852 barratree Sun, 21 Feb 2010 20:59:51 +0000 http://www.irisheconomy.ie/?p=5719#comment-36852 that link is to a Soros piece. Munchau link here: http://www.ft.com/cms/s/0/9776aeb0-1ef2-11df-9584-00144feab49a.html that link is to a Soros piece. Munchau link here: http://www.ft.com/cms/s/0/9776aeb0-1ef2-11df-9584-00144feab49a.html

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