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IPFS News Link • European Union

Eurozone Inflation Is High When It Comes To The Prices Of Daily Purchases

• https://www.zerohedge.com by Daniel Lacalle,

Defenders of aggressive monetary policy have always used the same arguments really.

First, they say there is no inflation – as if an average 2% increase in prices during a crisis whereby many salaries fell up to 20% does not constitute "inflation".

After, they say it is temporary, so to justify maintaining aggressive easing policies.

Next up, the "inflationistas"  seek to blame businesses or some kind of external enemy for the rise in prices, whereby they ask governments to impose price controls.

Important to understand here is that money creation is never neutral. It disproportionately benefits the first recipients of newly created money – governments -, and negatively affects real wages and savings of those that are not able to buy financial assets: the poorest.


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