April 27, 2010

AND THAT'S BEFORE THE WORLD'S LEADING ECONOMY SHIFTS TO CONSUMPTION TAXES:

The Deflation Club (Vincent R. Reinhart, April 27, 2010, The American)

At about every opportunity, Federal Reserve officials remind the world that they have a plan to exit from their policy of unusual monetary accommodation. Those statements might merely be reassurances directed toward those worried that inflation will ignite, given the fodder provided by $1 trillion of reserves in the banking system. But if the Fed is planning to tighten policy sometime soon, it would be well served to study the latest forecast of the International Monetary Fund (IMF). Even a quick scan shows that declining inflation, veering into outright price declines (or deflation) in some countries, continues to be a major risk to the global economy.

Posted by Orrin Judd at April 27, 2010 5:49 AM
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