We applaud Caroline Baum?s article in Bloomberg, Fed’s Inflation Analysis Ranks With Zimbabwe’s:
But excess money creation is the cause of inflation, and it would be better if the Fed could make the public understand that the rise in the price level is not a result of higher commodity prices, aggressive labor union demands for wage increases or greedy businessmen trying to milk the public.
This is the point we are repeatedly trying to hammer into people?s mind (see Cause of inflation: Shanghai bubble case study).
Tags: Caroline Baum, Federal Reserve, inflation, Zimbabwe
