Fed Friday
August 6th, 2010
A New York Times article today pitched “2 Top Economists,” Richard Berner of Morgan Stanley and Jan Hatzius of Goldman Sachs, against each other over the issue of deflation. The Times has perpetuated the nickname, “delflationistas,” and coined a cute new one as well, “inflationistas.” Hopefully these particular nicknames defy the pesky trend of sticking, otherwise economistas may have to start spicing up their wardrobes to match.
“According to the deflationistas, as they are nicknamed, a new round of stimulus spending by Washington is urgently required to stave off a Depression-like cycle of falling prices and wages that is difficult to reverse once it is set in motion.
Inflationistas, by contrast, worry more about the effect that additional government borrowing could have on the recovery. With the budget deficit expected to hover around $1 trillion a year for the next decade, they say, interest rates could eventually surge, making borrowing — and goods — more expensive. A double dip, they say, is highly unlikely.”
And “2 Top Reporters?” Since when does the NY Times speak text? Soon they’re going to have to start titling Avril Lavigne Songs.
