Comments on: Inflation or Deflation, why settle for just one? http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ecogabriel1 http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/#comment-30949 Fri, 02 Jul 2010 18:08:58 +0000 http://blogs.reuters.com/great-debate/?p=7376#comment-30949 Deflation is a far closer threat than inflation in the current economic climate

You can print money almost at will, but with unemployment figures sky-high (and not higher because the discouraged not count as unemployed) what is the “rational” decision – spend the easy money – may be overruled by a more urgent need -hoard as much money as possible in prevention of future unemployment.

Second, even if people would start spending that money, excess demand will not take place until production capacity is at full utilization which, by definition does not happen under conditions of high unemployment and depressed demand.

Keynesians used to say about monetary policy that you can pull a cart with a cord but not push a cart with it…

Pretty bad environment and not likely to change for a long while.

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By: coyotle http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/#comment-30947 Fri, 02 Jul 2010 15:35:28 +0000 http://blogs.reuters.com/great-debate/?p=7376#comment-30947 This is starting to look the Long Depression at the end of the 19th century.

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By: nbywardslog http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/#comment-30943 Fri, 02 Jul 2010 06:40:26 +0000 http://blogs.reuters.com/great-debate/?p=7376#comment-30943 Sounds as if you’ve got a bad case of indeflation.

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By: HBC http://blogs.reuters.com/great-debate/2010/07/01/inflation-or-deflation-why-settle-for-just-one/#comment-30937 Thu, 01 Jul 2010 20:12:04 +0000 http://blogs.reuters.com/great-debate/?p=7376#comment-30937 Deflation for the rich, inflation for the poor is what we’ve been seeing. This duality does not sit well overall.

As recoveries go, words fail to capture this one’s lack of conviction. While the meta-economy idles along patting itself on the back, the bottom’s not insured against dropping out of the economic pantsuit without warning. What to call it then will be of secondary importance.

In any economy that doesn’t have to work so much as be seen to be working its economic simulacra are on a timer to stop working for everyone.

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