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Collection: Charlie Munger - #5 'Why Don't U.S. Have Inflation?"



Mr.Munger. we have record budget deficits, record unemployment, and record expansion of the balance sheet. Why do you think we don’t have inflation? And secondly, could you recommend some good books you’ve read the last year?


Well, regarding inflation. You know, the economists of the world thought they knew a lot more than they did.

What has happened is weird. In response to the Great Recession, all the nations in the world have printed money like crazy and have bought all kinds of investment assets. They’ve done things that nobody in the economics profession would have recommended on this scale, even five or so years ago.

And yet, the inflation has been very low.

I think we all have a lot of things to be modest about when we talk about economics.

Lyndon Johnson said that giving a talk on economics was a lot like pissing down your leg. It feels hot to you but it doesn’t influence anybody else very much. (Laughter)

And I’m afraid I can’t do much better than Lyndon Johnson could. (Laughter)


Books? Any books you recommend?


Oh books. People send me books more than I can read, [inaudible] so I skim a lot of them very rapidly. And so I’m not sure I’m the right one anymore to ask.

Books have been so important to me all my life. I find that my — I used to read fewer books and read them better than I do now. And of course, I don’t see very well. So maybe you should talk to some younger man about your books. (Laughter)



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