Brace For Hyper-Inflation, 2

Image via Wikipedia

Henry Blodget|May. 4, 2009

Economist Allan Meltzer explains how hyper-inflation developed in the 1970s.  It wasn't because people were stupid then.  It wasn't because they didn't care about inflation.  It wasn't because they didn't think inflation was a problem.

It was because they thought pumping money into the economy would strengthen the recovery, add jobs, etc. and because the Fed wasn't independent enough to stand up to political pressure.

Sound familiar?

Brace For Hyper-Inflation, 2

Related articles by Zemanta

• Fed preview: Debate over inflation risk continues (financialpost.com)
• Obama, Bernanke and the 1970s Redux (usnews.com)