Inflation: Far into the Future

With capacity utilization at a record low and unemployment continuing to rise, inflation won't be a problem for quite a while

Inflation has passed swine flu as the most over-hyped problem in America. Inflation always lags behind the economic cycle, and while inflation is always a monetary phenomenon, the relationship isn't a magical one. A rising money supply creates inflation through its impact on the real economy, as higher capacity utilization, lower demand, and a falling currency create inflationary pressures.

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