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ohiosam
Senior Reader

Inflation to fix our problems?

 

 

The Federal Reserve spent the past three decades getting inflation low and keeping it there. But as the U.S. economy struggles and flirts with the prospect of deflation, some central bank officials are publicly broaching a controversial idea: lifting inflation above the Fed's informal target.

The rationale is that getting inflation up even temporarily would push "real" interest rates—nominal rates minus inflation—down, encouraging consumers and businesses to save less and to spend or invest more. 

 

read more here...

http://online.wsj.com/article/SB10001424052748704689804575536391713801732.html?mod=WSJ_hpp_LEFTWhats...

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4 Replies
djsinseia
Frequent Contributor

Re: Inflation to fix our problems?

Beginning to sound like the 70's, isn't it?

 

Now we just need higher oil prices anda grain embargo!Smiley Wink

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Re: Inflation to fix our problems?

always heard history repeats itself....

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ray h.
Senior Contributor

Re: Inflation to fix our problems?

     History does repeat itself,and if it can happen,It will happen!

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highyields
Senior Contributor

Re: Inflation to fix our problems?

why would inflation fix our problems.  why would that make businesses invest more money.  Sounds like a nightmare...

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