Other commodity producers – like Australia, Canada, Chile, and New Zealand – have low levels of inflation and minimal upside risks to inflation.
“Let the market deal with the issues of the financial sector, and capital and risks will be efficiently allocated,” most academics argued. A saying attributed to the well-respected former Bavarian prime minister Franz-Josef Strauss comes to mind: “A dog is more likely to put away a sausage for a rainy day than the state is to save money.” Then came the financial crisis.