Inflation, Not Deflation, Is Our Ultimate Problem [View article]
Money supply is only one variable in the equation. Velocity of money is another. Velocity is down a lot, that's deflationary. I'd like to know what forces are pushing towards recovery. I don't see any right now. Deflation is much harder to defeat than inflation, just take a look at Japan in 1990s (and picture in later years is not pretty either).
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Money supply is only one variable in the equation. Velocity of money is another. Velocity is down a lot, that's deflationary.
Dec 03 11:25 am
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All Comments by Alex Filonov »Inflation, Not Deflation, Is Our Ultimate Problem [View article]
I'd like to know what forces are pushing towards recovery. I don't see any right now.
Deflation is much harder to defeat than inflation, just take a look at Japan in 1990s (and picture in later years is not pretty either).