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The preposterous deflation scare Part II – Why are low inflation rates supposedly so dangerous?

Posted on August 20, 2014 by Karl-Heinz Thielmann — Leave a comment

The concept that very low rates of inflation are dangerous is closely related to the belief that there is some sort of an “optimum rate of inflation” for the economy, at which economic growth can progress at its smoothest. This…

Real commodity price trends – part 1: Gold

Posted on July 17, 2014 by Karl-Heinz Thielmann — Leave a comment

Contrary to popular belief, gold was not a good store of value in the last century. Adjusted for inflation, the gold price behaved very cyclical. Since the 1920ies it showed a reverse pattern of economic sentiment. During periods of improving…