Monday, July 13, 2009
This article is a very interesting take on events in the US from an inflationist point of view. Also, I was remembering the other day about the arguments against having a policy of full national employment, basically because of inflationary problems. Whether by accident or design, rising unemployment in the UK is an extremely useful block against inflationary pressures, whether this is a policy or not, "we had to burn the village to save it" type thinking. Worth a read anyway, because the situation is broadly similar in the UK. The conclusion drawn is mass inflation when the government cannot extend state ownership (nationalised banks, car companies etc) further, and the banks have no other choice but to restart lending.