Ray on Aussie politics

John Ray has yet another blog going; this one focuses on Aussie politics. Considering the past output of Ray; I would suspect it will be well written and informative. It has been blog-rolled.

Inflation is a Disease of Money

or Why I Won’t Be Betting the Farm on Interest Rates Rising Much Soon

It may be a saying of wizened old monetarists but that does not make it any less true. While the economic illiterati that pass for journalists at the likes of the BBC are all in a flap about higher oil prices causing inflation, the Bank of England seems to potter along in a relaxed way.

Commentators alternately forecast doom - rising oil prices, we are told, will lead to permanently higher inflation as people adjust their expectations and pay demands to the new, higher level of prices and we will all end up with a nasty inflationary spiral like we did in the 1970s.
Then bust - the Bank will raise interest rates to choke off this inflation, leading us into a new recession. Isn’t the economy already stalling?
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