Showing posts with label Rogoff. Show all posts
Showing posts with label Rogoff. Show all posts

Saturday, March 20, 2010

Observations on Bernanke's Dilemma: Hyperinflation and the US$

I am having a little trouble accepting one important message in an earlier article, Bernanke's Dilemma: Hyperinflation and the US Dollar, written by Ron Hera, describing his perspective on the economic course we are on. It is an excellent article, a must read. For me, one of his core beliefs is that if "the credibility of a government, or of its central bank, breaks down, the recognition of this fact is expressed as a race to shed the currency and to divest of the government’s bonds. One way to evaluate the possibility of hyperinflation is therefore to gauge the transparency, completeness and veracity of government and central bank statements regarding their balance sheets, budgets and bond issues."