This is not as interesting as railing about bank bailouts … but I should pass on the inflation figures released today. Here is the government report, hot from the press: Consumer Price Index (CPI) The major news here is, of course, the incredibly low inflation rate for the year. At 0.1% it is the lowest […]

Those of you who know me well enough will understand my glee when I read this article from today’s New York Times: Rescue of Banks Hints at Nationalization I have said all through this crisis that the cleanest and quickest way to bail out the banks is to inject capital. The plan would be for […]

I mentioned yesterday that we should evaluate the effects of any stimulus package through the lens of the ‘multiplier effect’. The notion is that any money spent by the government passes through several pairs of hands as it circulates the economy. Spending creates demand which creates jobs and thus more demand. And so on. One […]