Saturday, September 20, 2008

Coordinating Inflation

"A top European Central Bank policy maker Tuesday said global central banks should coordinate further to ensure banks have easy access to funds during a crisis. Making currency-swap lines permanent or ensuring central banks can accept collateral in foreign currencies could ease global funding logjams that can crop up during turmoil, ECB executive board member Jose Manuel Gonzalenz-Paramo said", my emphasis, WSJ, 10 September 2008.

It's good to see central banks cooperating to ensure a uniform rate of inflation throughout the world. Eventually they will make all paper currencies worthless.

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