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We should beware the fallacy that

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    We should beware the fallacy that

    We should beware the fallacy that high inflation will help economic growth and unemployment

    http://www.telegraph.co.uk/finance/9...our-peril.html

    Surely inflation will reduce debt and hence encourage growth?

    #2
    Originally posted by BrilloPad View Post
    Surely inflation will reduce debt and hence encourage growth?
    Quite the opposite, inflation will reduce peoples disposable income. We arent seeing pay increases keeping up with inflation are we?

    The only thing that is keeping some people spending is the fact their mortgage's interest rate is so low. That trick wont last forever. Nor is it helping those who rent, or who own their house outright or who are retired on a fixed income.

    Edit:

    I wrote this and then started reading the torygraph, predicting interest rates would rise next year.

    http://www.telegraph.co.uk/finance/e...e-in-2013.html
    Last edited by escapeUK; 23 December 2012, 09:30.

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      #3
      Originally posted by escapeUK View Post
      We arent seeing pay increases keeping up with inflation are we?
      This is very true. But what happens if pay rises keep up with inflation?

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        #4
        ..
        Last edited by Jeff Maginty; 6 June 2022, 16:50.

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          #5
          Re: We should beware the fallacy that

          No matter what happens, there will be those who gain and those who lose out
          Coffee's for closers

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            #6
            Inflation will go through the roof if/when the banks start lending again.




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