The latest Business Week offers us this assessment:
The nation’s monetary base?consisting of bills and coins in circulation plus banks’ deposits at the Fed?has climbed 114% over the past year through May. For comparison, the biggest annual increase before this crisis, going back as far as 1960, was a little under 16%. It’s only natural to wonder whether the Fed is making a big policy mistake that will lead to high inflation, either soon or a couple of years from now.
Crazy as it sounds, though, the Fed is probably going in exactly the right direction. In fact, if anything, the wave of money it’s generating may not be big enough.
I suspect the author of Meltdown would wholeheartedly disagree.
