Your new post is loading...
But news from the US means markets are likely to remain twitchy at the prospect of interest rate hikes
|
Scooped by Graham Watson |
Scoop.it!
No comment yet.
Sign up to comment
Larry Elliott reflects upon the threat of inflation, arguing that hawks forecasting uncontrollable, double-digit inflation seem not to have moved with the times.
He argues that inflation targeting and different inflationary expectations make overheating, and the associated inflation, unlikely and that instead we should be focusing on the fact that inflation needn't be a bad thing.
Indeed, it might be worth revisiting the costs of inflation and highlighting those circumstances in which controlled inflation is a good thing. Remember, the inflation target in most countries isn't 0% for many reasons - and at the moment, with a surge in government borrowing, higher inflation reduces the real value of government debt, so that might be considered a benefit too.