His observation does not account for how the US Current Account deficit (and the Chinese dollar peg) impacts the relationship between the policies of the Fed, US monetary supply and inflation.
Wednesday, September 19, 2012
Bernanke is creating inflation....in China (part 2)
This is the real chart I should have used in the previous post, it illustrates my point. It is taken from the blog of someone who thinks that the "money multiplier is dead" (Cullen Roche at PragCap.com).
His observation does not account for how the US Current Account deficit (and the Chinese dollar peg) impacts the relationship between the policies of the Fed, US monetary supply and inflation.
His observation does not account for how the US Current Account deficit (and the Chinese dollar peg) impacts the relationship between the policies of the Fed, US monetary supply and inflation.
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