The last two issues of Economic Perspectives drew on observations made while I was on a month’s visit to South Africa, during which time the Finance Minister, Pravin Gordhan, presented his annual Budget to Parliament in Cape Town. He was robustly resistant to calls from a variety of special interest groups for more welfare spending than his budget could extend to, and I could see that his unwavering steadfastness amid all that clamour was putting his personal position at risk.
Responses to previous instalments of my “Economic Perspectives” include queries on why unbridled credit expansion by the main central banks in USA, UK, EU and Japan does not appear to be reflected in a commensurate rise in the general price level, affecting all sectors of the economy.
As an economic term, “inflation” is shorthand for “inflation of the money supply”.
But for the general public it is usually felt as “rising prices” – which is not surprising since one of the common effects of an increase in the money supply is higher prices.
A former Wall Street trader discusses the risks of interest rates.
David Morgan explains why he doesn’t believe the Western world will experience a hyperinflation.