by Kelsey Williams
GoldSeek
IS INFLATION NECESSARY?
The straight answer is “no”. The clarity of my emphasis is prompted by a friend’s reaction to my previous article “No Winners When The Inflation Balloon Pops”.
In the article, I said, “A certain amount of inflation is necessary to keep things from cascading downward.” My friend exclaimed quite vociferously that “INFLATION IS NEVER NECESSARY!” He’s right. Both he and I shared similar concerns a number of years ago when one of our monetary heroes, Milton Friedman, made similar comments about the necessity of inflation. To us, it seemed like a cop-out; and, it still does.
As far as my own comment is concerned, I asked my friend to consider the context in which my statement was made. Here is an excerpt from the article that should help clarify why I said what I did…