Can the US inflate out of crisis this time?
In the last century US has for several times inflated itself out of financial crisis. Will the same strategy work this time?
The unexpected commodity price drop seems to be a critical factor among many others that indicate the impossibility. The price drop may temporarily make it easier for FED to deal with the immediate problems, but in the long run it would substantially weaken the US dollar. The weakened dollar in turn will prevent US from using the same inflation strategy to deal with the crisis.
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