Are concerns over inflation inflated?

In his latest annual address at Cass Business School, Cass Visiting Professor Lord Adair Turner tackled an economic taboo - monetary financing.

The policy is often demonised due to its link to runaway inflation. However, implemented correctly, it has its place in economies suffering severe hardship, Lord Turner argued.

He suggested that, as interest rates in these economies are often close to zero, cash injections would not necessarily lead to balloons in inflation.

Policymakers are often 'fixated' on keeping inflation low during economic dips. Lord Turner argued they should consider alternative targets, such as the achievement of a certain level of GDP, as a mechanism for recovery.

He did emphasise that monetary finance was only suitable in certain circumstances and that so called 'helicopter drops' could be dangerous if used in the wrong instances.

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[Burt Nobrain]

Rob from the creators and give to the leeches.

[Graham Williamson]

What an eloquent yet down to earth bloke. Everything is explained simply and clearly and I'm 100% convinced he knows what he's talking about. Nice one.