Tuesday, February 16, 2010
Whatever it takes
Blanchflower argues that we should try to generate inflation to protect people in negative equity - even while acknowledging that the nation will face a drop in living standards as a result. This is possibly one of the most blatant attempts to explicitly support homedebtors I have ever come across. Blanchflower repeatedly states that we should be shaping our monetary policy to help people in negative equity by letting inflation rip - whatever the consequences. Scary stuff.