Monday, January 24, 2011

Not Everyone Dislikes Bernanke's Monetary Policy

Dr. Ben may have accidentally helped Japan out of their endless deflationary spiral as demonstrated from the following Reuters snippet.  

"The Bank of Japan on Tuesday revised up its consumer price forecast for the fiscal year beginning in April, a move that reflects the impact of recent rises in commodity prices."

Oh wait, what's this next line?  

"On the underlying economy it kept its assessment that while the economy was showing signs of a moderate recovery, the improvement seems to be pausing."

So inflation due to money supply growth and NOT velocity growth can actually cause an economy to go back into the tank?  Scratch Japan from the list.  


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