Category: Inflation
The analysis published under this category are as follows.
Wednesday, December 09, 2009
Aristophanes on Inflation / Economics / Inflation
By: Clifford_F_Thies
It used to be that every economist worth his salt knew Gresham's Law (or, if he was Polish, Copernicus's Law): "bad money drives out good." Narrowly understood, this rule says that when the government requires people to accept different forms of money at an exchange rate fixed by law, the form of money that is overvalued (the "bad money") will circulate, while the form of money that is undervalued (the "good money") won't.
Tuesday, December 08, 2009
Email Exchange With The Cleveland Fed On U.S. Inflation Expectations / Economics / Inflation
By: Mike_Shedlock
A couple weeks ago I received an email from the Cleveland Fed on A New Approach to Gauging Inflation Expectations.
Wednesday, November 25, 2009
The Next Economic Crisis: Spiraling Inflation - Part 2 / Economics / Inflation
By: Nick_Barisheff
Read Part 1 “The Next Crisis: Spiralling Inflation”
“Under a paper-money system, a determined government can always generate higher spending and hence positive inflation.”– Ben Bernanke
The investment world is a risky and confusing place right now. Part 1 of this article (The Next Crisis: Spiralling Inflation) detailed the reasons why the next stage in the financial crisis will almost certainly be spiralling inflation. This article (Part 2) provides a solution for investors who are looking for a way to shield their hard-earned wealth from the destruction of high and uncontrollable inflation.
Read full article... Read full article...
Sunday, November 22, 2009
Ask India About Inflation / Economics / Inflation
By: Andrew_Abraham
Let’s put things into perspective India has one of the largest populations in the world as well it is one of the strongest markets this year. The economy is booming. There are new constructions starts, corporate earnings have been going through the roof as well as the Rupee has gained in value against the US dollar. Sounds great… Right?
Read full article... Read full article...
Friday, November 20, 2009
Good Inflation / Economics / Inflation
By: Joseph_T_Salerno
Last week a student in my MBA-level intermediate-macro seminar raised a provocative question. We were discussing the various kinds of (price) deflation and which kinds, according to Austrians, are benign and accommodate consumer preferences, and which are malignant and conflict with consumer preferences.
Read full article... Read full article...
Wednesday, November 18, 2009
Deflationists Are WRONG, Prepare for the INFLATION Mega-Trend / Economics / Inflation
By: Nadeem_Walayat
The jist of the deflationists argument is that debt deleveraging MUST trigger huge consumer and asset price deflation. Whilst we have all witnessed huge asset price deflation and some consumer price deflation during 2008 and into 2009. However we have also witnessed unprecedented government and central bank actions of this year, which have ignited asset price inflation with more to come that is now starting to feed into consumer price inflation.
Tuesday, November 17, 2009
The Investment Game Plan, How to Combat Inflation / Economics / Inflation
By: Dr_Jeff_Lewis
Inflation is an easily understood phenomenon. Although it takes a myriad of think tanks to find the root of the problem, the issue is quite simple, and investors can easily prepare their portfolios against the ravages of inflation.
Tuesday, November 17, 2009
Three Reasons Why Inflation Will Not Be Stopped / Economics / Inflation
By: Dr_Jeff_Lewis
Inflationary practices are the primary driver of growth in the value of precious metals, and they are already in play to combat the credit crunch. Although the Federal Reserve is planning its exit strategy, there is little chance one will actually be enacted – which means that inflation will continue to bulldoze the value of the US dollar.
Monday, November 09, 2009
What Is Inflation and How Does One Measure It? / Economics / Inflation
By: Mike_Shedlock
To understand inflation, one must first understand what money is and how to measure it. Please read What is Money and How Does One Measure It? before attempting to understand what follows.
Unfortunately there is no general agreement as to the definition of inflation. Here are some of the widely used definitions as noted in Inflation: What the heck is it?
Friday, November 06, 2009
The Path To Runaway U.S. Inflation / Economics / Inflation
By: Ganesh_Rathnam
"I see green shoots," said Fed Chairman Ben Bernanke on 60 Minutes back in March, doing his best rendition of Haley Joel Osment from the movie The Sixth Sense. Since then, every poor economic headline in the lapdog media has been preceded with the word "unexpected," as if the clueless chairman's pronouncements were suddenly the Gospel, and the economy had indeed recovered.
Thursday, November 05, 2009
Treasury Inflation Protected Securities (TIPS), Are They For You? / Economics / Inflation
By: Michael_Pollaro
On November 4th, Bloomberg ran this piece: U.S. to Sell $81 Billion in Long-Term Debt Next Week
Same old same old, right? Another big treasury auction. Maybe it’s a bit more than that, this time.
Friday, October 30, 2009
Ready for inflation in finance, living costs and bone-headed stupidity...? / Economics / Inflation
By: Adrian_Ash
SINCE MONEY MAKES the world go round, more of it would set the earth spinning faster, right? Which would be a good thing, of course...
Thursday, October 29, 2009
Dangerous Inflationary Side Effects of G20 Ultra-Easy Money / Economics / Inflation
By: Gary_Dorsch
Operating under the elixir of ultra-low interest rates, and flush with trillions of fiat currency at their disposal, courtesy of the world’s top-20 central banks, hedge funds and banking Oligarchs are once again making risky and daring bets in commodities, emerging markets, junk bonds, and blue-chip stocks, defying gravity with trades that would have been un-thinkable just six-months ago.
Thursday, October 29, 2009
The Next Economic Crisis, Spiralling Inflation / Economics / Inflation
By: Nick_Barisheff
As the credit crisis ends, a bigger one is just beginning
“The US government has a technology, called a printing press… that allows it to produce as many US dollars as it wishes at essentially no cost.” – Ben Bernanke
The US economy contracted for four consecutive quarters since October 2008, something we have not seen since the Great Depression. A V-shaped recovery is simply not in the cards because the credit crisis has caused deep, systemic damage. Having said that, if the recession ends this year, it certainly won’t be because the global economy is healthy.
Read full article... Read full article...
Wednesday, October 28, 2009
Stealth Inflation / Economics / Inflation
By: John_Browne
Over the past two years, the federal government and the Federal Reserve have dispersed trillions of public dollars, run up enormous deficits, and kept interest rates at zero. In just about any economic textbook, this combination of policies would be described as the perfect recipe for inflation. Yet, with the exception of the usual increases in health care and education, prices by and large are not rising. Many have concluded that our economic leadership has simply outsmarted the textbooks.
Read full article... Read full article...
Friday, October 23, 2009
When Will Inflation Really Hit Us? / Economics / Inflation
By: Terry_Coxon
Most of us are gathered at the station, watching for the Inflation Express to come rumbling in. But we've been waiting for a while now. Just when should we expect the big locomotive to arrive and start pushing the prices of most things uphill?
We’d all like to know the exact date, of course, but no one can know for sure. Not even a careful reading of the Mayan calendar will help.
Read full article... Read full article...
Saturday, October 17, 2009
Inflation and Government Deficits, Milton Friedman's View / Economics / Inflation
By: Paul_L_Kasriel
Before getting started on this month's essay, I would like to say something about last month's chart show. I received a number of favorable comments about the different format. I have to admit that my ego was bruised a bit. I thought you liked my prosaic prose. My ego notwithstanding, I will try to give the customers what they want more often - just not every month. The reason for not providing a chart show every month is that not enough changes that frequently to warrant such. So, this month you are stuck with the prosaic prose. And because not that much has changed from last month save for stronger-than-previously expected consumer spending in the third quarter, I am going to discuss two issues that are getting a lot of ink of late rather than spending time discussing the updated forecast.
Saturday, October 10, 2009
Measuring CPI Inflation, Alice In Wonderland And The Bond Yield Paradox / Economics / Inflation
By: Andrew_Butter
This article is not about what inflation is, it's about how you measure one component, CPI (Consumer Price Index), there are other components; but that's the focus of this article.
Big picture to estimate CPI you work out a "basket" of goods and services that consumers buy which you think is representative of the structure of spending in an economy, and you do a survey, then you compare that with how much it would have cost to buy the same "basket" a year before.
Read full article... Read full article...
Wednesday, October 07, 2009
The Autumn 2009 Inflation Time Bomb / Economics / Inflation
By: Paul_Tustain
It's not only the energy markets that threaten the 'low inflation' data now encouraging bondholders to keep buying...
THE PUBLISHED INFLATION DATA are surprisingly unsophisticated in so far as they compare current prices with a snapshot a year earlier.
Read full article... Read full article...
Thursday, September 24, 2009
Inflation is Our Future, Gold About to Shine? / Economics / Inflation
By: Puru_Saxena
At present, there is a lot of confusion amongst the investment community and opinion is divided as to whether we will witness inflation or deflation.