Tuesday, Jan 19, 2010
Why would anyone listen to this man?
FT: King optimistic on inflation target
''Inflation will not rise out of control and should return to target, Mervyn King, the governor of the Bank of England, insisted on Tuesday night after official figures showed the largest jump in annual inflation rates on record in December. Consumer price inflation rose from 1.9 per cent in November to 2.9 per cent in December, far above both the City and the Bank of England’s expectations, but Mr King said the rise was “temporary” and “do[es] not constitute a continuing source of inflation”. ''
Posted by hpwatcher @ 07:53 PM (1309 views) Add Comment
12 Comments
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1. hpwatcher said...
Please tell me, I'm waiting...
2. str 2007 said...
Perhaps Mr. King knows how the figures are about to be manipulated.
3. Magol said...
funny how its always a "temporary spike" when inflation overshoots, and never when it undershoots
4. Crunchy said...
Merlin Kink should have stepped out of the tragic circle long ago. Hocus Pocus!
5. paul said...
He has been saying this for years - all inflation rises have been temporary and required no action!
It's this kind of rhetoric continually being proven wrong that has got us in this mess!
6. fallingbuzzard said...
Karen Ward has it spot on. Worry about inflation when it gets into wages. Personally, I'd worry when it gets into disposable income, which it should have already done. I back King on this 100%
7. Simplysam said...
My next door neighbour can make the same sentences for half the salary he is on!
8. This comment has been removed as it was found to be in breach of our Blog Policies.
9. Crunchy said...
4. fallingbuzzard
So it's ok by you that peoples spending power takes yet another hit.
The standard of living for many across the globe has been down, down, down over the years.
You can't beat the curse of inflation. Think on!
10. freemanphil said...
Inflation is already here, the collapse in credit should have caused massive deflation of assets so that the economy could re-adjust, reducing the need for debt, re-distributing wealth from wreak-less borrowers, to sensible savers.
The absence of deflation is the inflation, but, once the inflation cat is out of the basket, just try putting it back. The truth is, that Britain has monetized double of expenditure than the Weimar Republic. Feeling Queasy? "This phenomenal 'queasing' is greater by far than anything Weimar Germany tried"
Feeling Queasy? "This phenomenal 'queasing' is greater by far than anything Weimar Germany tried"
11. hpwatcher said...
He has been saying this for years - all inflation rises have been temporary and required no action!
Unless it is a negative measurement, then we will have billions of QE - just in case.....
12. Crunchy said...
10. freemanphil
Inflation never went away. Deflation is a temporary illusion. A momentary rest from virtual money.