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Home Publications Blogs Beat the Press Serious Discussions of Inflation at the NYT

Serious Discussions of Inflation at the NYT

Sunday, 30 May 2010 18:54
The NYT asks the right questions in this piece on the European Central Bank's (ECB) policies. The ECB continues to insist that its main job is fighting inflation even though there is no inflation in sight. As the article points out, deflation is likely to pose the bigger risk for the immediate future.
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written by izzatzo, May 31, 2010 6:48
In addition, factories are operating below capacity and euro zone unemployment is at 10 percent. Extra money in the system would not create scarcities of goods or labor that could drive up prices, Mr. Weinberg of High Frequency Economics said.

“You don’t have to pay any more to get those workers to come out of unemployment,” Mr. Weinberg said.

This topic will be addressed in a special session entitled Dean Baker, The Free Lunch Economist, in the upcoming America Speaks! town hall meetings sponsored by Pete Peterson, including the following presentations:

The End of Scarcity, Markets and Relative Prices

Everything is Free Except New Debt

Deflation Prevents Trickle Down by Concentrating the Future Value of Wealth

Stupid Liberals.
written by tinbox, May 31, 2010 11:10
No inflation in sight?
The Euro has dropped 18% in 6 months against the Dollar, Chinese Yuan and Japanese Yen. Priced in Euros, a typical commodity index like the old CRB index is up over 10% in 6 months.

You don't really have to look to hard to find some inflation in plain sight.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.