http://www.discusseconomics.com/banking/522/ Join the conversation on a variety of economic and finance discussions. Sun, 05 Feb 2012 11:15:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.discusseconomics.com/banking/522/comment-page-1/#comment-20510 Free to choose Tue, 30 Jun 2009 14:48:02 +0000 http://www.discusseconomics.com/?p=522#comment-20510 Basically, by not allowing the financial markets to adjust, toxic banks and toxic assets to fall, the relative price mechanism will create inflation. I explained the whole process here <a href="http://autoinsurance5.com/inflation-money-supply/" title="Free economics and inflation" rel="nofollow"> Austrian economics has describe this process of allowing Banks or any asset to not fall and not to adjust freely. The result is a perfect storm for the economy.</a> Basically, by not allowing the financial markets to adjust, toxic banks and toxic assets to fall, the relative price mechanism will create inflation. I explained the whole process here Austrian economics has describe this process of allowing Banks or any asset to not fall and not to adjust freely. The result is a perfect storm for the economy.

]]>