Economic Dis-Reporting

This morning, I was listening to “The Marketplace Morning Report” on NPR. The head of the Boston Fed said that he thought that the Fed should pump lots more money into the economy. The reporter pointed out that some people thought that that would lead to inflation.

The Fed guy replied that there were no signs of inflation now.

No one (with any economic sense) thinks that inflation is possible today, no matter how much money is pumped into the economy. There is simply no demand that would drive prices up, even though there’s all too much money floating around. The fear is that, once demand does go up, there will be all that money just waiting to pump up prices.

The Fed guy had to understand this.

Ditto the reporter.

The kindest thing one could say about the exchange is that it was “he said/she said” reporting.

But the accurate thing to say is that it was a dishonest government official enabled by a dishonest reporter.