The ketchup theory of inflation
May 28th 2010, 9:15 by Buttonwood
SHAKE the ketchup from the bottle/first, a little, then a lottle. We've all struggled to deal with Heinz's best known variety. And the pseudoplastic nature of the sauce helps explain why quantitative easing could, if things go wrong, end up in hyperinflation. As Tim Lee of pi Economics suggests
The central bank keeps "shaking the bottle" (ie monetising debt) but no ketchup (ie inflation) comes out - so it shakes even harder. In the end, the ketchup comes out in an inflationary rush.