John Tamny doesn’t see the U.S. succumbing to a Japanese style deflation.
From winter 2009, here’s a similar item.
In 2001, Jude Wanniski distinguished between falling prices due to contraction versus monetary deflation in which the dollar’s value is rising.
At New World Economics, Nathan Lewis discusses This Time is Different by Reinhart & Rogoff.
Joe Weisenthal at www.businessinsider.com charts CPI's progress since the dissolution of the gold standard:
In The WSJ, Cato's Gerald P. O'Driscoll explains why loose money from the Fed won't help.
While O'Driscoll's piece is good, he falls into the trap of blaming low short term interest rates, rather than the dollar's lower quality as measured against gold, for the recent asset boom.
It was refreshing to reread Jude's simple presentation. Not too long ago I sat on a plane next to a man who supplied snack nuts to chain drug stores. He told me that in the case of a rapid change in price of nuts between the time of order and the time of delivery, some suppliers simply refused to sell the nuts at the agreed-on price -- effectively there were no products available to fulfill the contract.
ReplyDelete