Rajan, Raghu.
We have just experienced financial panic. Paradoxically, a downgrade of U.S. debt has triggered a flight to liquidity towards the assets that have been downgraded. Ultimately, the cure for financial market paranoia is strong economic growth. Recently, a number of commentators have proposed a sharp contained bout of inflation as a way to reenergize growth in the United States, and the rest of the industrial world. Are they right?
Πηγή: Chicago Booth Blog