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novice · 25-02-2004, 23:43

Schroeder calls for the ECB to cut interest rates to curb the Euro's strength.

The ECB will not automatically comply. But I think it shows that monetary inflation in the US, which in part causes a falling USD, will eventually cause monetary inflation around the world to try and support the USD.

Price inflation always eventually follows monetary inflation.

So hello inflation (US and world wide)!

It also seems that this inflation will not cause much in the way of economic growth so it is quite possible that there could be stagflation (i.e. rising inflation and rising unemployment) in the near future.

And I thought I wasted 3 years on an Economics degree!

25-02-2004, 23:43	#1
novice Super Moderator Join Date: Oct 2003 Posts: 1,222 Downloads: 0 Uploads: 0 Rep Power: 0	Hello inflation and maybe stagflation Schroeder calls for the ECB to cut interest rates to curb the Euro's strength. The ECB will not automatically comply. But I think it shows that monetary inflation in the US, which in part causes a falling USD, will eventually cause monetary inflation around the world to try and support the USD. Price inflation always eventually follows monetary inflation. So hello inflation (US and world wide)! It also seems that this inflation will not cause much in the way of economic growth so it is quite possible that there could be stagflation (i.e. rising inflation and rising unemployment) in the near future. And I thought I wasted 3 years on an Economics degree!