Economia




INFLATION OR DEFLATION?
By Merle Hazard

As we go through this recession
As farther down we slip
Will our central bank get traction soon, or
Will it lose its grip?

It’s a mini-Great Depression
Our markets went berserk
The Fed is printing trillions now, but
Will their efforts work?

Inflation or deflation?
Tell me, if you can
Will we be Zimbabwe
Or will we be Japan?

Credit markets came undone
And still are in distress
Will the dollars in my mattress
Buy much more next year or less?

It’s a desperate situation
When you’re at the zero bound
If a tree falls in a forest,
Is it making any sound?

New money makes inflation
If folks who have it spend
But if it only sits there,
Then the misery will not end

Inflation or deflation?
The choice is looking grim
I wonder what John Maynard Keynes would say
If we asked him

Inflation or deflation?
Tell me, if you can
Will we be Zimbabwe
Or will we be Japan?



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