Word: baumohl
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...later date that could destabilize the economy," he told the Joint Economic Committee. Folks, that?s as clear as the man gets without actually saying it: The Fed will raise interest rates one quarter point at its meeting on June 29. Says TIME senior economics reporter Bernard Baumohl: "After two weeks of wondering, he just removed the uncertainty...
...flat (with only a 0.1 percent hike if you exclude falling energy prices). That?s zilch, folks. And so now it can be told: Reports of the resurrection of inflation were greatly exaggerated. "April?s rise was, as predicted, a one-time thing," says TIME senior economics reporter Bernard Baumohl. "With May?s number, the jittery markets may finally be able to stop worrying." (And they did -- rising by almost 190 points by the end of trading Wednesday...
...what?s to be done? The Japanese government can?t keep pumping massive amounts of public cash into the private sector, and even if it could such infusions are largely beside the point. "Japan is so far into recession," says Baumohl, "that traditional measures may not work anymore...
...What about that government money? Aren't the tax breaks and public works monies trickling down and being spent in stores? No -? it?s getting stuffed under those same mattresses. "Any recovery has to start with consumers," says Baumohl, "and the Japanese, always a culture that emphasized saving, are truly in a desperate state. They need an incentive to start spending again...
...worse. That means printing money. Some economists, led by Paul Krugman of the Massachusetts Institute of Technology, think that inflation -? and, more important, the prospect of more inflation to come -? may provide the crucial incentive Japan needs. "By forcing prices up and eroding the value of the yen," says Baumohl, "you might convince people that whatever they?re going to buy, they?d better buy now, because in a month it?ll cost more." The same goes for saving -? why hoard your yen when they?re steadily decreasing in value...