Thursday, 14 April 2011

Satyajit Das: Deflating Inflation/ Inflating Deflation

http://www.nakedcapitalism.com/2011/04/satyajit-das-deflating-inflation-inflating-deflation.html


Extract below -


A significant problem is that velocity of money or the rate of circulation has slowed. Banks are not using the reserves created and money provided to increase lending. The reduction in velocity has offset the effect of increased money flows.


SS says - I have said this before in my posts and also have put some charts from Bloomberg.



No comments:

Post a Comment