Yes Tony, & I will argue that is because of monetary inflation. Money is being injected directly into to a particular part of the economy & the result is rising prices.
On the other hand, business conditions in my part of the economic world (aviation) are being slaughtered. No one goes on holiday in this climate. So, lets say British Airways goes bust (they're close). Does the British government bail them out with money they dont have? Its the national carrier after all.
In other words, I reckon bailouts will continue to prop up specific business interests, and others will die because they dont have the right connections.
As for the idea that inflation wont occur because banks arent lending, I suggest those that support this idea suffer from a lack of imagination (See housing example above).
