Kapil Sethi has a really odd piece yesterday in The Malaysian Insider yesterday. It started pretty alright by discussing crime but the strangeness began when he tried touch the realm of economics:
At a deeper level though, this desperation points to a changing politico-economic environment that is forcing such radical shifts in behaviour. When there is a perception that well-connected people are getting obscenely rich and are spending their wealth conspicuously and extravagantly while everybody else is feeling the pressure of stagnating incomes, greater indebtedness and inflation, feelings of anger and desperation seem only natural [Crime and the economic divide. Kapil Sethi. The Malaysian Insider. June 19 2012]
In short, he tried to link crime rate with fiscal profligacy.
I do not intend to discuss the strangeness of his article because it messes up my mind. Suffice to say, I disagree with what he wrote about the link. All I want to highlight further is this paragraph of his:
Increasing inflation, higher interest rates and consequent high default on outstanding loans given stagnating incomes could be an outcome of profligate government spending rife with “leakages” already seen in other economies, notably Greece.
Unfortunately for him, here is how Greek inflation looks like over the past 10 years or so.
I do not see anything special about the inflation rate, save those in 2008 and 2009 which were due to something else entirely (commodity prices boom and the subsequent recession and so-called recovery).
Increasing inflation? If you flip the chart upside down, then yes, maybe for the past two years.