Saturday, September 29, 2007

Cowboy Keynesianism + New Key Dollar Lows

Professor Jeff Frank makes point similar to mine in a letter to Financial Times. Both with regards to how U.S. consumer price inflation will soon accelerate sharply, and how higher "core" inflation will follow higher all-items inflation. However, he has a new funny way of characterizing the Fed's inflationary policies:"Cowboy Keynesianism".

Incidentally, the dollar fell to new lows against many currencies today, including the euro, the Australian and Canadian dollars and the Swedish and Norwegan krona. Perhaps most importantly, it broke through key psychological levels like $750 per ounce of gold and 7.50 versus the yuan.


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