by Brendan Brown
Mises.org
Economist Brendan Brown answered our questions about interest rates, the carry trade, and why the Federal Reserve won’t fix our inflationary malaise.
The Misesian (TM): Much of your work at mises.org has examined the many ways that monetary inflation creates various types of bubbles fueled by speculative narratives. They’re different with each business cycle, though. What do you see as some of the biggest bubbles out there right now?
Brendan Brown (BB): I think of bubbles as an extreme phenomenon. They are prone to develop in noncore markets under those types of severe monetary inflation where asset inflation, rather than reported inflation in goods markets, is the starkest symptom. (These episodes usually feature strong coincident nonmonetary downward influences on prices). Bubble-like qualities can also extend to some especially hot segments of core markets.