The dollar would have fallen faster or further had there not been this massive central bank intervention. If in fact they are going to cut back on their dollar-support activities, then the dollar is going to resume its decline, and that's going to have some inflationary implications.
More Quotes from Paul Kasriel:
When you print money, it's going to inflate some asset price. Maybe we'll revert to the late 1990s and buy stocks with it.Paul Kasriel
We could see corporations building up their inventories toward the end of 1999 for fear they won't be able to get goods in. They'll borrow to do that, and that will put upward pressure on interest rates as well.
Paul Kasriel
I think it's a big deal -- I think it'll be ultimately a deal we don't care for.
Paul Kasriel
We're in a situation where the economy is the most highly leveraged in the post-War period. If the Fed had to raise interest rates, that could bring the whole system down. And it's not clear that holding rates where they are or lowering them will save us from another recession.
Paul Kasriel
Every time we think the bond market is acting irrationally, we usually find out a month or two later that it was rational, that some people participating in the bond market knew more than most of us economists did -- which is not really a great feat.
Paul Kasriel
When the fog of war is finally lifted, we may find that economic growth remains weak because monetary policy turns out to be less accommodative than the Fed thought.
Paul Kasriel
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