Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The third kind, also recognized in Smith, is meso-inflation. Meso-inflation is when incentives become out of alignment between productive and unproductive labor in Smith, but more generally when incentives no longer send the correct signals to allocation of activity in an economy. A simple and obvious example of meso-inflation is a government over or under taxing. . . .

Could you elaborate a bit on this type of inflation, for those of us economically challenged?

And here's a bit from the BBC that suggests the geographic scope of the problem.

The soaring cost of food is threatening millions of people in poor countries, the United Nations Food and Agriculture Organisation (FAO) has warned.

Food prices have risen an unprecedented 40% in the last year and many nations may be unable to cope, the agency says.

It is calling for help for farmers in poor countries to buy seeds and fertiliser, and for a review of the impact of bio-fuels on food production.

Another report indicated the rise in food prices in the previous year was 6%. Holy shit.

 Care to comment?

Capitalism searches out the darkest corners of human potential, and mainlines them.

by geezer in Paris (risico at wanadoo(flypoop)fr) on Mon Mar 3rd, 2008 at 04:28:47 AM EST

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