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Tuesday, 10 June 2014

Daily inflation-indexing of the entire money supply would remove the effect of inflation or deflation (not actual inflation or deflation)

Daily inflation-indexing of the entire money supply would remove the effect of inflation - low, high and hyperinflation - or deflation (not actual inflation or deflation).

This happens daily with the USD 3 trillion plus in global government inflation-indexed bonds.

Chile today inflation-indexes more than 25% of its entire money supply on a daily basis. 

Why not 100%? What is wrong with doing away with the effect of inflation - low, high and hyperinflation - or deflation completely?

Nicolaas Smith

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