The Debate Zone: In the wake of the current crisis, is the U.S. economy more likely to suffer inflation or deflation?


McKinsey has an interesting debate on their web-site that questions whether there will be huge inflation in the coming years, especially with reference to the US.

Follow the debate here : http://whatmatters.mckinseydigital.com/the_debate_zone/in-the-wake-of-the-current-crisis-is-the-us-economy-more-likely-to-suffer-inflation-or-deflation

With reference to what is velocity?

Refer : http://en.wikipedia.org/wiki/Equation_of_exchange

Some interesting links:

http://freefrombroke.com/2009/01/savings-rate-finally-turning-upward.html

http://www.bankrate.com/brm/news/sav/20060308a1.asp

http://www.bea.gov/BRIEFRM/SAVING.HTM

http://articles.moneycentral.msn.com/Investing/Extra/USSavingsRateFallsToZero.aspx

Good Day!

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