One of my favorite newspaper clippings is an op ed piece in the WSJ
by Art Laffer in June 2009 predicting high inflation and interest rates
resulting from the Fed’s easy money policy. The culprit specifically was
the monetary base shown in an accompanying chart taking off like a
rocket. I think enough time has passed to declare him wrong, which he
has himself subsequently acknowledged.
I was reminded of that by an article on page 43 of the current (September 15-21) issue of Bloomberg/Businessweek. The article’s title is ‘Haters Gonna Hate.’ It points out that while Fed stimulus helped restore the economy and bring down unemployment rate from 10 to 6.1 percent ‘the stimulus hasn’t generated the ruinous price pressures foreseen my many critics. That’s a rebuke to the chorus of skeptics . . . who predicted the Fed’s unprecedented stimulus would lead to runaway inflation and send interest rates shooting higher.’
http://www.forbes.com/sites/bobmcteer/2014/09/13/ignore-the-low-inflation-and-strong-dollar-the-experiment-isnt-over-until-things-turn-bad/
I was reminded of that by an article on page 43 of the current (September 15-21) issue of Bloomberg/Businessweek. The article’s title is ‘Haters Gonna Hate.’ It points out that while Fed stimulus helped restore the economy and bring down unemployment rate from 10 to 6.1 percent ‘the stimulus hasn’t generated the ruinous price pressures foreseen my many critics. That’s a rebuke to the chorus of skeptics . . . who predicted the Fed’s unprecedented stimulus would lead to runaway inflation and send interest rates shooting higher.’
http://www.forbes.com/sites/bobmcteer/2014/09/13/ignore-the-low-inflation-and-strong-dollar-the-experiment-isnt-over-until-things-turn-bad/
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