Hat tip to Rebecca Wilder of RGE for providing some interesting facts on inflation:
In 1982 there were 27 countries with inflation above 20%
In 2008, there were18 countries with inflation above 20%
In 2011, the IMF estimates there will be only one country Venezuela with 20+% inflation.
This shows the great progress we made in inflation in the last thirty years, but the issue is always where are we going not where have we been. If Greece had its own currency, would we be looking at a high inflation QE policy with possible devaluation?
What is the point of all of the liquidity? Central banks want to get inflation higher. Certainly not 20% but the objective is o bed the inflation curve upward. Once that is done, can they stop the process? I think not.
In 1982 there were 27 countries with inflation above 20%
In 2008, there were18 countries with inflation above 20%
In 2011, the IMF estimates there will be only one country Venezuela with 20+% inflation.
This shows the great progress we made in inflation in the last thirty years, but the issue is always where are we going not where have we been. If Greece had its own currency, would we be looking at a high inflation QE policy with possible devaluation?
What is the point of all of the liquidity? Central banks want to get inflation higher. Certainly not 20% but the objective is o bed the inflation curve upward. Once that is done, can they stop the process? I think not.
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