tag:blogger.com,1999:blog-8515247115132134144.post2893945129129810592..comments2024-02-17T12:34:01.400-08:00Comments on Illusion of Prosperity: USPS: That '70s Show! (Musical Tribute)Stagflationary Markhttp://www.blogger.com/profile/04568993350246477976noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8515247115132134144.post-27883037847371911412011-06-01T22:11:30.835-07:002011-06-01T22:11:30.835-07:001970s style stagflationary quote of the day:
June...1970s style stagflationary quote of the day:<br /><br /><b>June 1, 2011</b><br /><a href="http://www.cnbc.com/id/43237587" rel="nofollow">El-Erian: Why Fed Is Unlikely to Have Third Round of Easing</a><br /><br /><i>It is also clear that, in its attempt to deliver “good” asset price inflation (e.g., higher equity prices), the Fed also got “bad” inflation. The latter, which essentially took the form of higher commodity prices, is stagflationary in that it imposes an inflationary tax on both production and consumption—thus countering the objective of QE2.</i><br /><br />As he implies, I suspect QE3 would raise the bad inflation to good inflation ratio substantially.Stagflationary Markhttps://www.blogger.com/profile/04568993350246477976noreply@blogger.com