Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "Japan's Crisis Is Spreading To The World" video.

  1. Shooting the messenger doesn't change the fact that inflation is complex, it's causes are diverse, and that complexity determines if, when, and where, central bank monetary policies can influence inflation. Ask yourself why inflation is most marked and persistent in Services rather than Goods? Then ask yourself how much does interest rate hikes influence the cost of insurance, or the price of shipping imports? Just considering those two questions will clarify why the cause of inflation are worth identifying. It's like why we have different types of fire extinguishers to fight fires caused by different substances burning. Use the wrong type and you could make things worse. Likewise, use the wrong policy for the type of inflation, and you might kill more economic growth factors than cure inflation. That's just how it is, and Jeff is just informing you of the dilemmas facing the Fed.
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