{"id":191978,"date":"2009-05-28T23:09:00","date_gmt":"2009-05-29T04:09:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/28\/more-people-come-out-in-support-of-inflation\/"},"modified":"2009-05-28T23:09:00","modified_gmt":"2009-05-29T04:09:00","slug":"more-people-come-out-in-support-of-inflation","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/28\/more-people-come-out-in-support-of-inflation\/","title":{"rendered":"More People Come Out in Support of Inflation"},"content":{"rendered":"

I have been saying for some time<\/a> that this is the way out of the housing crisis, because it will devalue the mortgage loans to match real-estate prices returning to sanity.<\/p>\n

Well, there are now some noted economic voices saying the same thing<\/a>:<\/p>\n

So say economists including Gregory Mankiw, former White House adviser, and Kenneth Rogoff, who was chief economist at the International Monetary Fund. They argue that a looser rein on inflation would make it easier for debt-strapped consumers and governments to meet their obligations. It might also help the economy by encouraging Americans to spend now rather than later when prices go up.<\/p>\n

\u201cI\u2019m advocating 6 percent inflation for at least a couple of years,\u201d says Rogoff, 56, who\u2019s now a professor at Harvard University. \u201cIt would ameliorate the debt bomb and help us work through the deleveraging process.\u201d <\/p><\/blockquote>\n

6% is a 12 year doubling time, and 3 years at 6% would get you an increase in prices of about 19%.<\/p>\n

I think that the reason that he’s talking about those numbers is because much above 6%, you start having real concerns about it getting away from you.<\/p>\n

Meanwhile, Paul Krugman<\/a>, while not coming out in defense of some inflation, says that he does not see it as a big deal.<\/p>\n

He feels that the levels of debt under these circumstances are justified, and backs it up with historical examples.<\/p>\n","protected":false},"excerpt":{"rendered":"

I have been saying for some time that this is the way out of the housing crisis, because it will devalue the mortgage loans to match real-estate prices returning to sanity. Well, there are now some noted economic voices saying the same thing: So say economists including Gregory Mankiw, former White House adviser, and Kenneth …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[973,1200],"tags":[],"class_list":["post-191978","post","type-post","status-publish","format-standard","hentry","category-economy","category-inflation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/191978"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=191978"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/191978\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=191978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=191978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=191978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}