Thursday, 14 June 2007

Inflation

Europe 1.9%
Japan 0%
US 2.6%
UK 2.8%

Europe and Japan below target, in US and UK expected to decelerate

1. The fear is that too much money is chasing too few goods.

2. Growth in money is far above nominal output.

The increasing financial complexity of rich countries creates demand for more money relative to economic output.

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