Sunday, September 02, 2012

Note on inflation

Inflation is taxation without legislation. 
~Milton Friedman

I guess that most people think of inflation as just a fact of life that you have to live with, like the weather. Inevitable. And not caused by anybody or preventable by anybody. 

1 comment:

Ken said...

We will be hearing a lot about this in the future because America is unlikely to be able to solve its problems without a rise in inflation to 3-5%. Basically print money, and put interest rates up to control inflation but not too much. That way wages will rise and people will pay down their debts. Only problem is that asset prices wont rise as fast as inflation. People with lots of assets will be unhappy, but considering that inequality is the greatest it ever has been, they will just have to live with it.

The alternative is a mess. People with no money and an ever increasing public debt.