Bloomberg/Matthew Boesler/1-20-2022
“The inflation expectations doctrine that’s dominated mainstream economics since the 1980s offers one potential way to square that circle. The idea is that if a central bank can convince businesses and consumers it will maintain low and stable inflation, then it won’t have to do much else. That’s because expectations about where prices are headed are thought to be a major driver of inflation itself.”
USAGOLD note: This kind of thinking is akin to believing that we can control inflation with price controls. It ignores the real reason for price inflation: monetary inflation. To make a long story short, it ignores reality – a form of voodoo economics.
