Though a lot of hot money was poured into the trade in the last quarter of 2020, there is still much reluctance on the part of economists – always prone to a spot of Under-consumption fallacy – to wholly embrace the idea that prices are beginning to rise and that the path ahead is likely to be an inflationary one. That path will inevitably not be smooth, nor its ascent uninterrupted, but it is hard to see where we slow the climb or take a different turning – or even that sufficient will exists to choose that alternative were it ever to come up on our satnav.
Tag Archives: Deposits
In our latest piece we look at the ECB’s overkill and all manner of possible over-valuations at work in different markets around the world – the two not being entirely unconnected, the reader might note!
For those who will not take my word for it that banks do create deposits by lending money, let me quote you a little Roepke from a footnote (p113) to his 1936 work, ‘Crises & Cycles’: “The process [of credit creation] is now clearly explained in any text-book on economics, banking or money (especially recommendable […]