Inflation signals must be heeded

Bankers are sounding a warning about the debilitating rates of inflation as they seek to engineer a global economic recovery

29th August, 2009

Alan Greenspan sees it as one of the main risks to a sustained economic recovery.

Arthur Laffer, the main proponent of Reaganomics in the US, feels it could leave us in a worse economic predicament than in the 1970s,when US interest rates peaked at over 20 per cent.

Their concern is inflation. At a time when we are seeing falling prices in many developed economies, debilitating rates of inflation seem a very remote possibility. There...

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