Inflation could repeat the 1960s, when the Fed lost control, Niall Ferguson says
Repost from 9-8-2021
“Inflation could be repeating the trajectory of the late 1960s, which laid the foundation for sustained high prices the following decade, according to economic historian Niall Ferguson.”
USAGOLD note: Ferguson is not alone in making the comparison to the 1960s’ monetary environment. As has been said so often, once the inflation genie is out of the bottle, it is very difficult to get it back in. The 1960s inflationary kickoff Ferguson mentions, we recall, preceded the runaway inflation of the 1970s. “You can go from a public health disaster,” he says, “to a fiscal, monetary and potentially inflationary disaster.” At the moment, the public still believes that the Fed has control of the genie – expectations are capped – but that can all change in a heartbeat.