'..certainly no “classical” economist. The so-called “Austrians” just have a superior conceptual framework when it comes to analyzing inflation and inflationary processes.'<blockquote>'I had the good fortune of being introduced to the
Richebacher Letter in 1990 and had the opportunity to assist the great German economist, Dr. Kurt Richebacher, with his monthly publication for a number of years back in the nineties (and somewhat beyond). He was certainly no “classical” economist. The so-called “Austrians” just have a superior conceptual framework when it comes to analyzing inflation and inflationary processes.
For me, the primary focus on Credit always resonated. An expansion of debt – “Credit inflation” – will have consequences, although the nature of the inflationary effects can differ greatly depending on the nature of the underlying Credit expansion, the particular prevailing flow of the new purchasing power and, importantly, the structure of the real economy (domestic and global). The increase in purchasing power may or may not increase a general measure of consumer prices. It might be directed to imports and inflate trade and Current Account deficits. It may fuel investment. Or it could flow into housing and securities markets – perhaps inflating asset Bubbles.
Dr. Richebacher persuasively argued that rising consumer price inflation was the least problematic inflationary manifestation, as it could be rectified by determined (Volcker-style) monetary tightening. Presciently, Richebacher viewed asset inflation and Bubbles as the much more dangerous inflationary strain - too easily tolerated, accommodated or even propagated.'
- Doug Noland,
Inflationphobia, July 19, 2013</blockquote>
Context (<a href="[
bazaarmodel.net] Kurt Richebächer</a>)
<blockquote>
'..to the role Credit played in economic cycles..' - Doug Noland(Global) - To Heal (to prevent, to cushion) - '..Second World War possible, though not inevitable..'