Inflation’s Big Driver: Transportation
Part 3 of my series about inflation. Here I’m concerned with inflation’s big driver: transportation. Let’s look at its components. Continue Reading →
Tag Archives: inflation
Inflation Update
As more of the Biden administration’s team and agenda are made public, inflation expectations increased steadily. Bonus: what you can do. Continue Reading →
Inflation, Its Causes, and Money
The only way to lower inflation is to reduce the growth rate of the money supply. The growth of M2 has exceeded 10% since March, 2020. Continue Reading →
Facebook Factcheck Fail
Facebook factchecked my post about Bidinflation, saying it lacked context. The numbers match those reported by BLS. Facebook factcheck fail. Continue Reading →
Measuring Expected Inflation
Current inflation news including calculating expected inflation, the yield curve, and the term structure of expected inflation. Continue Reading →
Is There Inflation in Our Future?
All signs point to higher inflation starting soon. Current and planned economic policies will cause inflation to move even higher after 2022. Continue Reading →
Watch for Interest Rates to Rise Soon
The Fed’s attempt to rescue the economy using monetary policy alone has been a fool’s errand. Now they face a Sophie’s choice: (1) Do nothing and watch inflation increase, or (2) drain the excess reserves from the system and watch interest rates rise. Actually, interest rates will rise either way. Continue Reading →
Prof. Taylor Fails History
In other words, monetary policy is more effective when an overheated economy needs cooling off. Expansionary policy, on the other hand, is not quite so effective. Continue Reading →
Inflation is Right Around the Corner
My advice: buy canned food now. And plant that vegetable garden. Continue Reading →
Marketplace MegaFail Inflation Edition
Frankly, these statements are incredibly stupid. Inflation means prices and incomes are rising at about the same rate. Any increase in salaries will just keep pace with inflation, leaving the consumer with unchanged purchasing power. The only way people who borrow can pay back with cheaper dollars is if the inflation is a complete surprise. If the inflation is expected, it will be part of the interest rate on the loan. Finally, higher housing prices? Give me a break. Even if housing prices rose, the real net wealth in your house wouldn’t change much because the higher price level would eat up the price increase. Continue Reading →