http://www.arcticgoldfinger.com/2007/10/20/helicopter-ben-and-inflationary-expectations/ Biased Opinions on Gold from the North's Leading Expert (self-styled) Tue, 06 Jan 2009 03:37:40 +0000 http://wordpress.org/?v=2.2.2 http://www.arcticgoldfinger.com/2007/10/20/helicopter-ben-and-inflationary-expectations/#comment-88 Helicopter Ben and “Inflationary Expectations” Thu, 06 Mar 2008 14:11:46 +0000 http://www.arcticgoldfinger.com/2007/10/20/helicopter-ben-and-inflationary-expectations/#comment-88 [...] herb wrote an interesting post today onHere’s a quick excerptI thought “Helicopter Ben” was a pretty good nickname for the Fed Chairman, but somebody dreamt up an even better one for him and the whole Federal Reserve Board: “Bennie and the Ink Jets.” Printing vast quantities of money is what they do, but they also have to perform the magic trick of convincing people that this avalanche of paper money has nothing to do with inflation. Bernanke, of late, has tried to perform this bit of legerdemain by blaming inflation on “inflationary expectations.” In other words, if we could just keep inflationary expectations “well anchored,” then inflation would stay in the acceptable range. (Why there should even be an “acceptable” range for inflation is a really good question). So what would take to rev up inflationary expectations? How about this: suppose you were earning five percent on your savings account while, at the same time, […] [...] […] herb wrote an interesting post today onHere’s a quick excerptI thought “Helicopter Ben” was a pretty good nickname for the Fed Chairman, but somebody dreamt up an even better one for him and the whole Federal Reserve Board: “Bennie and the Ink Jets.” Printing vast quantities of money is what they do, but they also have to perform the magic trick of convincing people that this avalanche of paper money has nothing to do with inflation. Bernanke, of late, has tried to perform this bit of legerdemain by blaming inflation on “inflationary expectations.” In other words, if we could just keep inflationary expectations “well anchored,” then inflation would stay in the acceptable range. (Why there should even be an “acceptable” range for inflation is a really good question). So what would take to rev up inflationary expectations? How about this: suppose you were earning five percent on your savings account while, at the same time, […] […]

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