How Quickly Can Price Inflation Explode To The Upside?

The answer: Very quickly.

Amity Shlaes is a senior fellow in economic history at the Council on Foreign Relations. Her writings are followed carefully by the top of the top at CFR. And to a significant degree she uses Hayekian business cycle theory in analyzing the economy. She also has the distinct honor of being hated and attacked by the Keynesian Paul Krugman.

In other words, take her very seriously.

Yesterday, I wrote on how confused Bernanke was by stating that price inflation was of little concern. Here's Shlaes putting things in historical perspective:

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