Common Sense From Former Fed Chair Paul Volcker

What he didn’t mention was that the misguided 2% Fed inflation target also feeds crony capitalism.

(From Bloomberg)

The real danger comes from encouraging or inadvertently tolerating rising inflation and its close cousin of extreme speculation and risk taking, in effect standing by while bubbles and excesses threaten financial markets. Ironically, the “easy money,” striving for a “little inflation” as a means of forestalling deflation, could, in the end, be what brings it about.

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