Quote:
Originally Posted by saden1
Our current problem is a liquidity trap and deflation. I very much doubt a ~15 trillion GDP economy with ~2.7 trillion in receipts and ~100% debt to GDP ratio will suffer inflation as easily as some would have you believe. Sure, it's possible but there would have be serious negligence and gross miscalculation for that to happen (i.e. we print a multiplier of our national debt).
p.s. What monetary tool do you think the government uses to combat inflation? If you guessed tighten money supply you would be correct. |
"serious negligence and gross miscalculation " How about bailout money and AIG
Economists disappointed with Obama, Geithner - BloggingStocks