4/08/2005

Is Inflation Back

We all believe that Alan Greenspan is increasing interest rates slowly bit by bit to insure that inflationary pressures are at a minimum. In the article “Is Inflation Back” by Daniel Kadlec posses a different concept on the interest rate hikes. He says that Greenspan my be increasing interest rates in part to have room to cut them again given the economy starts to deteriorate. I don’t agree with Mr. Kadlec but I am sure most don’t.

1 comment:

Dr. Tufte said...

The English have a good phrase for people like Daniel Kadlec and the economist he cites: too clever by half.

Their position is that somehow Greenspan lacks credibility (in what way is not clear). I suspect that they mean he lacks credibility as an inflation figher. This is nonsense. You have to have failed at fighting inflation for that to be reasonable.