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2008 was on the verge of a massive deflationary spiral. Bank debt forgiveness likely did cause inflation, but we needed it then! We are now in a period of high
by rory 4y ago
2008 was on the verge of a massive deflationary spiral. Bank debt forgiveness likely did cause inflation, but we needed it then! We are now in a period of high inflation already, so we would very much not like more.
- edmcnulty101 4y agoLooks like inflation's was as high as it was today in 2008. https://www.whitehouse.gov/cea/written-materials/2021/07/06/historical-parallels-to-todays-inflationary-episode/ https://www.whitehouse.gov/cea/written-materials/2021/07/06/...
- rory 4y agoNo, it's not at all actually: https://fred.stlouisfed.org/graph/?g=T1OA https://fred.stlouisfed.org/graph/?g=T1OA
- edmcnulty101 4y ago2008 had one of the top 5 or 6 peaks of inflation over the past century! So not sure how you're deducing there was no inflation. The deflationary spiral happened AFTER the bank bailout.
- rory 4y ago> 2008 had one of the top 5 or 6 peaks of inflation over the past century! More like the 9th or 10th, but nonetheless I see what you're talking about with the summer 2008 oil spike. The problem with this analysis is that a deflationary spiral is really more about price jerk than inflation itself. In other words, the rate at which inflation is changing is the bigger concern than the inflation rate itself. > So not sure how you're deducing there was no inflation. This is a strawman you've entirely made up, so I won't respond to this portion.
- edmcnulty101 4y ago> This is a strawman you've entirely made up, so I won't respond to this portion. > More like the 9th or 10th I think you just did.
- rory 4y ago??