Is this a case of society preferring high inflation to recessions?
Thanks for sharing your view.
Maybe an idea for a next post;
I'd imagine recessions are worse for the jobs of Democratic politicians than high inflation. (I'd need to dig but lots of dictators seem to manage with high inflation).
I know central banks are independent on paper but in reality they seem to listen to the politicians or to the market.
Yes, in democratic societies, recessions are worse than inflation. And with most people having no memories of high inflation it could well be that politicians and central bankers feel ok with higher inflation. But in the end high inflation will also lead to a recession, so no win there.
fwiw, I still think Trichet at the ECB is still by far the worst central banker of the modern era. Clueless doesn't even come close to describing his (disastrous) time at the ECB!
Everyone involved with the ERM is thankful for not being mentioned here.
Is this a case of society preferring high inflation to recessions?
Thanks for sharing your view.
Maybe an idea for a next post;
I'd imagine recessions are worse for the jobs of Democratic politicians than high inflation. (I'd need to dig but lots of dictators seem to manage with high inflation).
I know central banks are independent on paper but in reality they seem to listen to the politicians or to the market.
Either way someone will complain 😅
Yes, in democratic societies, recessions are worse than inflation. And with most people having no memories of high inflation it could well be that politicians and central bankers feel ok with higher inflation. But in the end high inflation will also lead to a recession, so no win there.
fwiw, I still think Trichet at the ECB is still by far the worst central banker of the modern era. Clueless doesn't even come close to describing his (disastrous) time at the ECB!
I sympathize very much with that view
I am a bit surprised there was no mention of Bernake. I am curious to why not. Thanks
No particular reason. I just didn’t think it was necessary.
I didn't think he fit the theme of the article but felt compelled to ask. I thoroughly enjoy your articles and books. Thanks