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Readings: Inflation Scare, China & India, Vietnam

Posted on June 30, 2008

Investors Insight: The End of the Inflation Scare?. . . two sets of players can create money ex- nihilo in our system: central banks and commercial banks. So if the excess liquidity creation has not been the central banks, then the explanation must lie with the commercial banks. To return to our old favorite, Irving Fisher s equation of MV=PQ, it seems obvious to us that the current increase in P (prices) has more to do with the past few years extremely buoyant V (velocity) than excessive M (money) growth.In India and Southeast Asia: If the US went through a good devaluation (i.e.: ...

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india , system