… because I am wholly unqualified. But it’s fun to try to keep up.
And the money I’m saving for my down payment in a year or two? If we decide that inflation is a great thing, I might as well kiss it goodbye. Maybe the government should just requisition it, like foodstuffs for an army in time of war. My fault for not blowing it on consumer goods.
Posted by: Adam | December 16, 2008 at 07:06 PM
Adam: and that is exactly the sort of belief that I want to create. I want people to fear inflation more than deflation, so they will dump money, and safe government bonds, and safe little bank accounts, and buy real assets like stocks, refrigerators, even cans of beans! The proximate cause (not the original cause, but that horse has bolted) of the financial crisis is that everybody wants to hold the very safest, shortest, and most liquid assets: money and government bonds. The solution lies in making those assets undesirable enough that people will want to get rid of them.
From the comments at Worthwhile Canadian Initiative. If you follow only one Canadian economics blog (is there more than one?) let this be it.