Why not let prices and wages fall?

posted by
June 19, 2011
by Tim Cavanaugh  
Posted in Commentary

"For reasons I have described at length, I advise skepticism of any inflation claims that are based on the 'core' consumer price index (CPI). I also marvel that the Federal Reserve’s massive creation of new dollars has resulted in a deep and lengthy economic crisis during which we’ve seen only one fiscal quarter of price deflation and a 17-month period of sharp wage inflation. The latter — wages and unemployment paradoxically going up at the same time — is another lamentable feature the early part of the current crisis shares with the early part of the 1930s depression." (06/17/11)


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