VintonCounty

It's a Great Time to Be an Inflationista

Re inflation versus deflation, SW mixes his opinion with that of the typical politician; and that is a little confusing. The subject can be simplified. Inflation helps borrowers and hurts lenders and people on fixed incomes; deflation has the opposite effects. (But interest rates adjust for anticipated changes in money supply, so only surprises have surprising effects.) So neither inflation nor deflation (whether of prices or money supply) are inherently preferable. It just depends on whom you want to help or hurt. The best condition for the national economy is price stability. End of story.