By Robert Presser on October 16, 2008
Those readers old enough to remember the oil shock of the early 1970’s and the resulting surge in inflation across most of the world’s economies will greet with skepticism the notion of inflation as a solution to the international economic crisis. In reality, we are already well on our way to inflation with the injection of trillions of dollars worldwide into the banking system to prevent it from seizing up – every dollar created by central banks to cover massive financial losses on the banks’ balance sheets debases the value of the issuing currency, and that’s the road we’re on...
