Pressure is mounting on Christine Lagarde, the European Central Bank chief, to get a grip on soaring prices on the Continent as inflation hit its highest level since the birth of the euro.
Figures showed eurozone inflation hit 4.9pc in November, far worse than the 4.5pc expected, as energy costs jumped a record 27pc compared with last year.
Ms Lagarde has insisted that the inflation surge is a one-off but that stance is coming under increasing pressure from hawks such as Germany, where prices are rising at the fastest pace for almost 30 years.
Uhn hunh.
Sure, they’ve been trying to create inflation for a decade now. But it’s one of those strange beasts – hard to create and perhaps harder to tame once created.
As so often, St Milt was right:
The Fed choosing to treat inflation as non-transitory is exactly the reason inflation will ultimately be transitory.
This paradox is known as Milton Friedman's thermostat.https://t.co/wtnnX4HiDP
— Noah Smith 🐇 (@Noahpinion) December 1, 2021
If you let a significant proportion of the population just stop working and then the government printed lots of free money and paid them with it, would that cause any inflation at all?
Thank you Stonyground.
+100%
In fact, I wonder if this isn’t the real underlying reason for the Great Covid Hysteria – to find a way of generating some serious inflation, so as to erode away the evidence of governmental misuse of public funds on a galactic scale over the last fifty years or so.
Isn’t that Transitphobic ?
The entire fiasco may be an attempt to blame an inevitable Govt caused economic crash on a bad winter flu. Using the increased cowardice modern living has brought. And replacing Market freedom/prosperity with social credit tyranny, greenfreak poverty and ultimate death.
Don’t buy any Govt BS from anywhere–they are ALL liars.
I think I should use Friedman’s Thermostat as a solution to global warming (and antidote to Insulate Britain).
“The evidence is clear that the more energy you use heating your house, the lower the outside temperature gets!”
Paul
Urban Heat Islands demonstrate this. Thermodynamics for pleasure and profit.
Replying to Stonyground’s question – No, of course not. Don’t you understand MMT and Professor Murphy?
No no no, this is all bollocks. Inflation and supply side shortages are only happening in the UK and are caused entirely by Brexit; everyome knows that.