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Trichet, King Haunted by BOJ?s Premature Interest-Rate Errors - Bloomberg
The risk is that shocks such as an oil-price surge can sometimes prove more deflationary than inflationary by squeezing spending power, said King at HSBC. His fear is that’s what happening in Europe now as the price of crude trades above $100 a barrel, close to the highest in more than two years.
“Dealing with a near-term inflation threat is all very well, but with oil-price spikes, there’s no such thing as a free lunch,” said King. “As we now know, the longer-term costs were enormous: stagnation, deflation and economic underperformance.”
augurati (per il tuo bene) che questo abbia torto marcio, vecchia gallina francofona......
The risk is that shocks such as an oil-price surge can sometimes prove more deflationary than inflationary by squeezing spending power, said King at HSBC. His fear is that’s what happening in Europe now as the price of crude trades above $100 a barrel, close to the highest in more than two years.
“Dealing with a near-term inflation threat is all very well, but with oil-price spikes, there’s no such thing as a free lunch,” said King. “As we now know, the longer-term costs were enormous: stagnation, deflation and economic underperformance.”
augurati (per il tuo bene) che questo abbia torto marcio, vecchia gallina francofona......

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