I wish to elaborate on an article that was blogged by Jeff Tucker (Inflation, not deflation, is the real danger (Fin Times). This article has a very Austrian flavor, and aroused my curiousity about the author. I wonder if he is a closet Austrian. I quote a little bit of it here.
Most discussion of the subject implicitly fails to distinguish between monetary policy influences on the economy and the ongoing, slow structural adjustment that has been the inevitable result of the collapsing of the giant financial bubble of the 1990s. The bubble was liquidity driven but became so big that it had structural consequences for the world economy. The financial imbalances in the US, particularly the low personal savings rate and enormous current account deficit, are well known symptoms.
