Monday, April 11, 2011

Is there an economist in the house?

I had always read that the reason we don't have food and fuel included in the core rate of inflation is because they are driven by factors that are outside monetary factors, in turn, are the main thing that central bankers worry about. But what if the rise in fuel costs is driven by monetary policy? Isn't part of the reason that oil is going up is because of our monetary policy, that we are borrowing such large amounts and the markets fear we might try to pay some of that debt off in the future by printing money, no?

No comments: