PRESTOPUNDIT -- "An intense brain-buzz, guaranteed" (2blowhards)

TWO FED PRESIDENTS favor more inflation, but Sandra Pianalto of the Cleveland Fed says it's time to slow the pace of monetary expansion:

It is prudent to move the federal funds rate up to a positive that gives me more confidence that monetary policy is no longer accommodative.

Remember: when productivity grows by leaps and bounds, prices should fall by skips and jumps. If prices are not falling, it means the Fed is ballooning the supply of money, i.e. artificially inflating the currency. Any good economist will tell you the same. Don't know any good economists? Try this one. Scroll down to here.

Some stuff to read:

"Hayek versus Keynes on How the Price Level Ought to Behave" (pdf)

"The Price is Right"

Less Than Zero: The Case for a Falling Price Level in a Growing Economy (amazon)

Posted by Greg Ransom | TrackBack