Tuesday, Aug 12, 2008
Second guessing our betters
Times: Inflation: keeping the target
This article is one of many recently about abandoning inflation targeting. As usual, there is no mention of the consequences of not using inflation as a means of controlling monetary policy. Given that we are born in a system completely dependant on an anticipated rate of inflation, this article is meaningless supposition in my view. The problems we face require a transfer of wealth. Simply that. From the pensioners, taxpayers, people who lose bank deposits, basically one or another group is losing some real wealth.
Posted by stillthinking @ 11:18 PM (274 views) Add Comment
3 Comments
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1. stillthinking said...
"As usual, there is no mention of the consequences of not using inflation as a means of controlling monetary policy."
I meant there is no mention of the consequences of not using monetary policy as a means of controlling inflation. I was confused because the article suggested abandoning targetting inflation. Let prices rise as they will ! Who cares !
2. mark wadsworth said...
"The problems we face require a transfer of wealth. Simply that. From the pensioners, taxpayers, people who lose bank deposits, basically one or another group is losing some real wealth."
Does not compute. How about we wake up tomorrow morning and all potential vendors decide to drop their asking prices by 40%. Wouldn't that fix most of our problems?
3. Eternal Sceptic said...
Playing football is very difficult when you can never be sure of the location of the goal posts