DanAronG
Joined: 17 Oct 2008
Posts: 103
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| Posted: Fri Mar 20, 2009 10:03 am Post subject: Will quantitative easing give rise to inflation? |
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| Possibly, but lets remember we are in the middle of a global banking crisis, a subject I covered four weeks ago. Rising unemployment, falling house prices, plummeting demand and record debt are not items that disappear overnight. They all stifle spending and as such will slow before they turn. It will be up to policy makers to use that and interest rates to slow the economy with the relevant measures. But remember, a bit of inflation is a lot better than a bit of deflation. |
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