User 334156

Target for Inflation: Getting It Right

Good Artical. Politics and Economics have minced words for so long nobody can really understand what is being said.

I feel the root of our current problems is in the mid 80s-early 90s. When computer technology allowed for vast, vast improvements in manufacturing efficencies of all kinds. In reality prices should have been *falling* for almost everything during that time period, as they should still be doing now.

Instead following a 'CPI stability' montra, the central bankers were forced to increase the money supply to maintain numerical 'price stability' against the natural efficency improvements. The fantastic increase in available money of all kinds, lead to the artificial growth and speculative bubbles that those same central bankers arenow trying to re-inflate.