Running Scared of Deflation

Summary


I HAVE never tried turning round a supertanker, but I gather it's a long, slow process. The world's governments and central bankers must feel like supertanker captains at the moment, frantically spinning the wheel, yet still the damned thing won't answer the helm.

The danger is that a combination of impatience, inexperience, sheer blind panic and a need to be seen by the crew to be doing something, can lead to oversteering. So, when the vessel does eventually start to turn, she doesn't stop, but continues until she faces the opposite way. This is a danger facing the world economy.

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Extract


Running Scared of Deflation

Those with their hands on the economic levers are terrified of deflation, the...

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