Recession or Inflation

[Gawain 0]

You're in a position to pick one or the other for your economy to endure. Which one do you pick and why?

My pick is recession. If the Fed were to work to stabilize the currency, banking system, etc. A rise in the interest rates would most certainly be a part of that plan. The economy resets, comes back stronger.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[rhys 0]

I picked recession.

With inflation everyone is affected, with recession some can gain from the situation, such as the USA is seeing now with growth in the cheaper/affordable market.

In times of recession there are ways to make sure you do not lose, but with inflation you had better already have lots of money or you suffer.

"When the power of love overcomes the love of power, then the world will see peace." - 'Jimi' Hendrix

[nathaniel 0]

Where's the option for Ricardian equivalence?

My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski?

[Andrewwhyte 1]

The concept that policy makers can choose is what led us to the stagflation period of the 70's. The long term Phillips curve has been shown to be vertical (unemployment is independent of inflation). The first derivative of inflation can affect unemployment. This leads to a Zimbabwe like scenario amazingly quickly.

[Amazon 7]

I guess as long as you work for the government.. you are pretty much recession and inflation proof.

[StreetScooby 5]

I pick both. The govt plays around with their numbers so much, that I simply don't believe half of them. Likewise, Bernanke has been printing so much money for so long now that it's a primary reason prices have gone up all over the world.

We are all engines of karma

[Gawain 0]

Quote

I guess as long as you work for the government.. you are pretty much recession and inflation proof.

Tell that to the 20,000+ California employees that are being separated. Inflation certainly affects everyone, especially government/fixed employment.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!