http://www.economicshelp.org/blog/economics/is-inflation-causing-recession/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.economicshelp.org/blog/economics/is-inflation-causing-recession/comment-page-1/#comment-3392 Rain Tue, 05 May 2009 15:41:58 +0000 http://www.economicshelp.org/blog/?p=1128#comment-3392 That was a well composed piece of answer.Stock market crashes, sharp increase in oil prices and globalization can also be added to the list..I guess... That was a well composed piece of answer.Stock market crashes, sharp increase in oil prices and globalization can also be added to the list..I guess…

]]> http://www.economicshelp.org/blog/economics/is-inflation-causing-recession/comment-page-1/#comment-2322 Ralph Musgrave Tue, 13 Jan 2009 10:35:45 +0000 http://www.economicshelp.org/blog/?p=1128#comment-2322 Good summary of the causes of the recession. Seems to me that most governments’ have tackled the cause in that they have rescued banks. However, they have not done much about the deterioration in household balance sheets (item No 2 above). The US monetary base has doubled in the last quarter (which is unprecedented). I got this from an article in the Wall Street Journal. But I suspect most of this new money has gone to banks. Indeed too much of it has gone there, since banks are busy doing precious little with the money other than buying government stock. The US government has dished out about $1,000 worth of tax rebates or reductions per household, as I understand it, but this is chicken feed compared to the drop in value of the average house. Good summary of the causes of the recession. Seems to me that most governments’ have tackled the cause in that they have rescued banks. However, they have not done much about the deterioration in household balance sheets (item No 2 above). The US monetary base has doubled in the last quarter (which is unprecedented). I got this from an article in the Wall Street Journal. But I suspect most of this new money has gone to banks. Indeed too much of it has gone there, since banks are busy doing precious little with the money other than buying government stock. The US government has dished out about $1,000 worth of tax rebates or reductions per household, as I understand it, but this is chicken feed compared to the drop in value of the average house.

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