inflation

Dark clouds looming

A good piece from The Economist on “the dark clouds around the silver lining” of Fed monetary policy. A highlight: …constraining the economy to so low a rate of average inflation is a good way to ensure that very low inflation or deflation becomes a serious threat whenever the next shock hits. That would be nasty […]

Read More

Russia is doomed

Breaking at Bloomberg: The Central Bank of Russia has raised its key interest rate from 10.5 to 17 percent. This hearkens back to a post I published on Friday regarding divergence among central banks with regard to monetary policy stance. Some face looming deflation (or at least disinflation), like the ECB and Bank of Japan. Others allegedly face […]

Read More

Here’s nice summary of four economists’ in-their-own-words views on why inflation is so low despite five years of quantitative easing. I find Schiff unconvincing, Henderson refreshing, Sumner quite convincing, and Murphy wrong (disappointingly). Check it out and see if you can tell why.

Read More

QE over? Brace for inflation.

Lots of people began worrying about inflation when the Federal Reserve began QE back in 2008. Some even predicted “inflationary disaster,” warning that the monetary base cannot quintuple without a correlating rise in consumer prices. For a while, I believed these guys. I was an undergraduate economics student at the time, and their logic made […]

Read More

Rogoff on the exaggerated death of inflation

Harvard economist Kenneth Rogoff writing on the “exaggerated death” of inflation. I am not arguing that inflation will return anytime soon in safe-haven economies such as the US or Japan. Though US labor markets are tightening, and the new Fed chair has emphatically emphasized the importance of maximum employment, there is still little risk of […]

Read More

Truth on inflation, and some questions

Peter Klein speaks my mind on CPI. Namely, CPI doesn’t immediately reflect the malinvestment facilitated by artificial credit expansion because it measures inflation for “ordinary” consumer goods. It does not readily capture asset price inflation in things like equities, commodities, and agricultural land.   My question now, however: Is it feasible to differentiate artificially-induced asset price inflation […]

Read More

Is the Fed Really to Blame?

This article was originally published at ValuesandCapitalism.com on August 14, 2012. With the passage of Ron Paul’s “Audit the Fed” bill in the House recently, monetary policy is once again becoming a mainstream political issue. And it’s about time. For decades, Americans have stood idly by as inflation destroys the value of their hard-earned savings […]

Read More

How You Contribute to Monetary Inflation

A few weeks ago, I had the privilege of speaking to a small gathering of churchgoers about the causes, dangers and morality of monetary inflation—a topic about which I wrote recently. The audience was great and followed up the presentation with several thoughtful and challenging questions. One in particular stood out: “Are there ways that we—well […]

Read More