Sunday, December 12, 2021

Bill Mitchell — Central banks are resisting the inflation panic hype from the financial markets – and we are better off as a result

Regular readers will know that I think the current inflationary phenomenon is transitory. They will also know that I see the continual claims by financial market economists that central banks have to increase interest rates now to avoid an accelerating inflationary episode as having little economic content and lots of self interest content. If rates go up, they win their bets and the more they can bully authorities to do their bidding the more certain their bets become profitable. I am glad that central banks around the world are resisting that game of bluff. In previous periods, they have not resisted and have handed the financial speculators (the top-end-of-town) massive and unjustified profits and forced millions of workers to endure joblessness. It is also interesting that the mainstream press is starting to work that out too. Some progress....
Bill Mitchell – billy blog
Central banks are resisting the inflation panic hype from the financial markets – and we are better off as a result
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
http://bilbo.economicoutlook.net/blog/?p=48850

Related

Zero Hedge
Morgan Stanley: As Uncomfortable As It Can Be To Admit Defeat, Here We Are
 Seth Carpenter, global chief economist at Morgan Stanley
https://www.zerohedge.com/markets/morgan-stanley-uncomfortable-it-can-be-admit-defeat-here-we-are

1 comment:

Matt Franko said...

They WERE…. now Biden is telling Powell to stop the “inflation”…