Posts filed under “Inflation”
click for ginormous graphic
Source: Visualizing Economics
Earlier this year, we discussed the Lessons Learned from the Fall of Gold. That surprisingly generated some controversy despite the near 40% collapse from its 2011 peak.
Rather than spill a lot of ink onto the page, I wanted to direct your attention to the following graphic from Catherine Mulbrandon of Visualizing Economics. It is the real price of Gold, adjusted for inflation.
“It is after a trend has been reversed that the full effect of the preceding excesses is felt.” -George Soros For the last 5+ years we have seen a massive attempt by global central banks to prop up asset prices. The Federal Reserve has spearheaded the effort, increasing their balance sheet from less than $1…Read More
Expectations Stay Anchored in Spite of Declining Inflation Charles T. Carlstrom and Margaret Jacobson The Federal Open Market Committee (FOMC) has stated that its long-run target for inflation is 2 percent. Inflation does and will always vary around that target, but some observers are worried that the recent decline we have seen in inflation is…Read More
Why Do Measures of Inflation Disagree? Yifan Cao and Adam Hale Shapiro FRBSF Economic Letter December 9, 2013 Inflation as measured by the personal consumption expenditures price index is near historical low levels, below the Federal Reserve’s 2% longer-run goal. Another common inflation measure, the consumer price index, is also historically low, but…Read More
One of my biggest complaints about the media is the lack of accountability. People say things on TV in print an on radio, and then . . . Poof! No consequences. They influence public perception of issues, affect policy debates, drive legislation. This is a perfect example of a stern warning of currency debasement and…Read More
Click to enlarge Source: Economist According to the Economist: “Some modern economic historians dispute Smith’s argument that the discovery of the Americas, by Christopher Columbus in 1492, accelerated the process of globalisation. Kevin O’Rourke and Jeffrey Williamson argued in a 2002 paper that globalisation only really began in the nineteenth century when a…Read More
Commodity Prices and Inflation: The Perspective of Firms Mike Bryan, Brent Meyer and Nicholas Parker July 16, 2013 We’ve been thinking a lot about commodity prices lately. In case you haven’t noticed, they’ve been falling. And with inflation already tracking well under the Federal Open Market Committee’s (FOMC) longer-term objective of 2 percent,…Read More