Does a Weak U.S. Dollar Cause Inflation?

Economics / Inflation
Apr 05, 2011 - 09:23 AM
By: Axel_Merk



Should investors be concerned that a weaker U.S. dollar causes inflation? The price at the gas pump should be a stark reminder that a weaker dollar may contribute to higher prices. Yet, economists tell us that food and energy inflation does not count. Why do economists have such a baffling sense of logic? Are economists really aliens in disguise, locked up in ivory towers? Let’s shed some light on the logic and why it may not merely be strange, but wrong.

First off, we are talking about the “modernâ€