Tag Archive for Hyper-Inflaton

Why Deflation Fears are Also Exaggerated

In October 2009, I argued-so far correctly-that hyperinflation concerns in the United States were exaggerated.  Now fear of deflation is increasingly in vogue, but there’s a case that those fears are overstated too. It’s true that the potential for deflation probably was underestimated in some quarters.  Conventional wisdom said that mortgage rates would rise earlier…


Why Hyper-Inflation Fears are Exaggerated

It’s in vogue for commentators to warn that the booming federal deficit will cause hyperinflation.  However, these commentators rarely acknowledge counterbalancing forces that make this scenario—out of control inflation far beyond run-of-the-mill price increases—unlikely. The first flaw in these alarmist arguments is the presumption that the budget deficit the United States is now running is…