How High Is The Risk of a Currency Crisis?

img_6196“The financial crises 2000/2001 and 2008/2009 have resulted in increasingly inflationary monetary policies — as evidenced by the ongoing expansion of the quantity of money through credit expansion relative to output, provided by ever lower interest rates. The symptoms of these policies are rising consumer prices and, in particular, increasing asset prices such as stock and housing prices. It would be undoubtedly misleading to accept the widely spread narrative that price inflation is no longer a problem, or that current monetary policies would not cause inflation. The truth is that inflation is alive a kicking. How long can an inflation policy last? Mises answers:”