At its latest committee meeting, the Federal Reserve stressed the perils of deflation. Fed chairman Alan Greenspan made it clear that if there’s a whiff of it the Fed will act. In sharp contrast, European Central Bank president Wim Duisenberg slumbers on, occasionally mumbling about the dangers of inflation.
The Fed and everybody else is printing money. The state, too, is spending cash as if it grew on trees, with eurozone governments slipping into massive annual budget deficits and the Bush administration launching huge defence spending programmes and tax cuts.
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