Tuesday, May 23, 2017

Does the World End in Fire or Ice? Thoughts on Japan and the Inflation/Deflation Debate

We now discern the outlines of why money created out of thin air needn't be as inflationary as expected. If economic activity declines by $1 trillion due to lower incomes, spending, etc., creating $1 trillion out of thin air and injecting it into the economy as monetary and fiscal stimulus is more or less simply replacing the $1 trillion of deflation.

http://www.oftwominds.com/blogmay17/Japan-deflation5-17.html

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