RE: Why The Fed Can't Win The Battle For Inflation
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Ah yes but this largely applies to the US and perhaps other developed countries.
In Nigeria we're experiencing wicked inflation that looks certain to rise. Our currency is losing against the dollar and is on a downward spiral to Oblivion. Venezuela 2.0 shit going on here, just that ours is taking a slow burner approach.
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Stay safe than. If you are in downward spiral you have other issue than an inflation or target an inflation of 2%.
Yes that is true. But that all starts with the lack of confidence in the government and the presumption (usually rightly so) that they will screw things up even more. In a smaller economy like the ones you mentioned, that loss of confidence ends up in the economy in an overriding way. Hence, the solution by the bankers is to overprint when there is massively declining productivity.
It is a situation we saw repeated on a lot of occasions.
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