Tuesday, January 12, 2010

Hugo Cracks Down on Inflation

Hugo cracks down on inflation.....by beating up people who raise prices.

Very clever. He can bankrupt the middle class in six months.

WHY he would want to do that is hard to say. But it is an effective policy, if that is the goal.
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2 comments:

  1. Eric H12:16 PM, January 12, 2010

    Is it me or are some of the shelves in the pictured supermarket empty?

    ReplyDelete
  2. bd12:19 PM, January 13, 2010

    Maybe Hugo's just a "new Keynesian" who's aware of the manifest output effects of menu costs, and is making sure that they exist.

    ReplyDelete