May 28, 2003

Alan Reynolds introduces a dose of good sense into the conversation on deflation and devaluation. Choice cut:

Given the forecasting record of the IMF, Fed and Krugman, when they start worrying about deflation, investors start betting on inflation. An executive at TIAA-CREF tells me their most popular fund is inflation-protected bonds, and gold is up about 16 percent over the past year. Deflation scares for the United States are quagmire quackery ..
Posted by Greg Ransom