Inflation

FLG is way behind on his RSS feeds. So, serious analysis, or at least what passes for serious around here, will have to wait for a few days, but he found this interesting.

Buttonwood:

Those who believe in the inflationary option argue that huge fiscal deficits will encourage governments to debauch the money supply to reduce their debt burdens.

But a research note from Paul Donovan of UBS suggests this tactic is unlikely to work.

Economic policies of questionable effectiveness haven't stopped governments before.