How this crisis differs from the 2008-2009 crisis

Mises Insttitute/Arkadiusz Sieroń

graphic image showing 2008 versus 2020“Therefore, although in the short term the disinflation scenario seems more likely, in the long run the risk of stagflation increases, especially with too-fast credit growth and excessive debt monetization (the government may be tempted to get out of its large public debt through high inflation, which lowers real interest rates). The possibility that the [coronavirus] will be more inflationary than the GFC [Global Financial Crisis of 2008) should be acknowledged by economists, policymakers, and investors.”

USAGOLD note:  Important distinctions between the two crises are made at the link above ……

Repost from 5-12-2020

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