Current event summery Assignment Example | Topics and Well Written Essays - 250 words

Current event summery - Assignment Example However, this is least likely to cause inflation given the banks are securing money in an attempt to save it because of the universal economic decline. This in itself, is a discouraging factor for the Federal Reserve regarding printing. Also, Debts do not influence economy. Japan makes an example for it as it incurred huge debts from 1997 to 2003. Despite that, consumer prices in Japan declined. Likewise, government in Canada and Belgium did not make use of inflation to rid the load of debts. The general fear of inflation among masses can be fundamentally attributed to the biased consent of economists. Krugman is right in his assertion that economic recession will not cause inflation. I support his argument because he has referred to similar cases of Japan, Belgium and Canada who faced economic decline and incurred debts, yet never inflated the currency. The phobia people suffer from keeps them from investing in business. People should realize the truth and invest in business so that the economy may regain its