Blog on the Run: Reloaded

Friday, June 10, 2011 6:43 pm

Shrill liberal economists are shrill

Filed under: I want my money back.,We're so screwed — Lex @ 6:43 pm
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All the Very Serious People in America know that we must raise interest rates right now lest the inflation monster consume us. Only shrill liberal economists are saying things like this:

In recent months, both the European Central Bank and the US Federal Reserve have become more vocal in their desire to raise rates.

This temptation must be resisted. The west’s inflation problem stems from the voracious demand from Asia’s new industrial powerhouses. This must give hope that a mild dose of stagflation is simply the temporary symptom of an inevitable economic shift. Squeezing domestic inflation to offset it would be counter-productive.

In abnormal times, policymakers should also be alive to the balance of risk between inflation and unemployment. Letting the latter rise and become entrenched at a time of weakness would risk hardening the economic arteries further.

The real peril now is a double-dip recession rather than inflation. This is no time for tightening.

Wait, what? That wasn’t some shrill liberal economist? It was the Financial Times editorial page?

Oh.

Um. So we’re, like, really screwed, aren’t we?

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