Debt Crisis Means U.S., E.U. Inflation Likely to Remain Low

One likely consequence of the fiscal crisis in Europe? Sending the inflation hawks -- on both sides of the Atlantic -- back to their nests.



This congressional election year, it's become a convenient talking point to argue that the U.S. economy -- and other economies that have used fiscal stimulus and quantitative easing to combat the recession and keep credit markets liquid -- would see an increase in inflation.



The problem is, there's little evidence to support it. U.S. consumer prices fell 0.4% in 2009 and inflation is running at about at 2.2% pace so far in 2010.

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Debt Crisis Means U.S., E.U. Inflation Likely to Remain Low originally appeared on BloggingStocks on Wed, 12 May 2010 18:00:00 EST. Please see our terms for use of feeds.

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