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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: mishedlo who wrote (98789)6/22/2009 10:24:55 PM
From: Claude Cormier1 Recommendation  Read Replies (2) of 116555
 
Some Common Falacies about Inflation and Deflation: The Weimar Nightmare in Review.

There are several fallacies making the rounds of the economic community, often put forward by pundits on the infomercials for corporate America, and also on the internet among well-meaning but badly informed bloggers.

The first of these monetary fallacies is that 'the output gap will prevent inflation.' The second is that a lack of net bank lending or other 'debt destruction' will require a deflationary outcome.

jessescrossroadscafe.blogspot.com
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