He is forecasting reflation
will win the day for gold.
In the same way, artificially raising wages is the reflation
of the economically illiterate.
And of course, if the reflation
does continue, a weakening of the nominal exchange rate need not translate into a depreciation of the real exchange rate.
This is called managed asset reflation
by Daniel Lian, the Thaksinologist at Morgan Stanley Dean Witter in Singapore.
We are resisting the urge to shift towards the reflation
camp and move our global portfolio to a more aggressive cyclical, at least for now.
There were two proposals: Warren and Pearson's raising the price of gold scheme and Fisher's campaign for reflation
to combat the debt disease from overindebtedness.
The recovery was consumption-led, [TABULAR DATA OMITTED] fiscal reflation
being accompanied by a confidence-induced increase in households' spending propensity, but was further boosted in 1994 by increasing fixed investment.
Indeed, recall that policymakers historically have erred on the reflation
side far more often than the opposite.
But at a time when the former Soviet Union and Eastern Europe are collapsing; Europe is battered by recession; Japan is struggling with its own deflation; the Third World is growing more hopelessly mired in poverty, there is remarkably little attention paid to the necessity for global reflation
, for new worldwide institutions and initiatives that might create a global Keynesian underpinning for growth.
Because a growing debt ratio cannot be sustained forever, the two countries now face the choice between more fiscal restraint or reflation
President Roosevelt suspended the gold standard in April 1933 because it encumbered advancement toward the major domestic monetary objective: reflation
But the belief that reflation
was just around the corner caused creditors and debtors to dig themselves in deeper, thus delaying for some years the recovery of the Third World from the Volcker recession of 1981-82.