baltimoresun.com

« Can Constellation wriggle out of Buffett's embrace? | Main | Maryland car dealers book an OK September »

October 27, 2008

Why inflation may be a future problem

"Inflation is always and everywhere a monetary phenomenon," said Milton Friedman and Anna Schwartz. Notice they didn't say that money-supply increases automatically cause inflation. But if monetary growth is a necessary ingredient for future inflation, the table has been well laid. Or maybe we'll get another asset bubble. Whee! Here is money-supply growth courtesy of the St. Louis Fed via Big Picture. inflation.png
Posted by Jay Hancock at 10:52 AM | | Comments (0)
        

Post a comment

All comments must be approved by the blog author. Please do not resubmit comments if they do not immediately appear. You are not required to use your full name when posting, but you should use a real e-mail address. Comments may be republished in print, but we will not publish your e-mail address. Our full Terms of Service are available here.

Verification (needed to reduce spam):

About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
-- ADVERTISEMENT --

Most Recent Comments
Baltimore Sun coverage
Sign up for FREE business alerts
Get free Sun alerts sent to your mobile phone.*
Get free Baltimore Sun mobile alerts
Sign up for Business text alerts

Returning user? Update preferences.
Sign up for more Sun text alerts
*Standard message and data rates apply. Click here for Frequently Asked Questions.
Charm City Current
Stay connected