Tuesday, June 23, 2009

Whoops what happened to inflation?





These charts illustrate the problem facing the central bank in a sharp correction in the economy. no matter how much money they inject into the market if no one wants to spend the money ( refusal of velocity to increase) then growth won't be inflationary.
charts courtesy of Bloomberg and Bank Credit Anayst.

1 comment:

lonek8 said...

I love spending money. they should give it all to me