In this video inflation inflation is considered as a current consequence of the Obama stimulus package – ie. why it isn’t currently happening, and the theoretical inflation that will kick in once the economy starts to improve.

[youtube]http://www.youtube.com/watch?v=9sZdXJbK554[/youtube]

Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains.

One thing I don’t like about the video is the use of the CPI of 2 to 3 % to represent current inflation, that number is about as undoctored as Michael Jacksons’ face.

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