Thursday, September 21, 2006

Expected Inflation Coming Down?

Fed holds steady on interest rates yesterday, inflationary expectations coming down?


At 9/23/2006 7:34 PM, Blogger jonnyecon said...

isn't it funny that we as a society feel that fertile economic ground is only available when the inflationary beast is kept down. i am sure that there are many who wish inflation would be kept in check at the lowest possible point. somewhere around zero seems great to everyone. fears of inflation can cripple a nation. but inflation is a natural process in the market, true rampid inflation is no good, but what is the correct rate that inflation should be kept at? that is the question. also the cause of the inflation drop can lead to undesired consequences. excess capacity and lower demand than global output can lead to some undesired consequences, maybe. so don't be so happy with non-rising prices, more pofits keep everythin going.


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