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Archive of posts published in the tag: inflation

Inflation and MMT

Descriptive powers do not naturally unfold into predictive accuracy. Models by their nature must eliminate variables that can be critical. An economy as large and as dynamic as ours is a wonderful and complicated thing and not cooperative to descriptions and predictions according to simple models.

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The New Challenge of a Growing Economy

Most do not realize that we have not yet paid the bill for the recession and the Obama spending. Obama depended on the Keynesian multiplier to stimulate the economy. It failed because too many other friction costs counteracted it; including higher taxes, increased regulations, and a generally unfriendly business climate in DC. Even without these friction costs, the benefit of the multiplier is limited. 

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Economic Superstition

Presidents get too much credit and blame for an economy as if it turns on a dime the moment they are elected.  The right want to credit Trump for the sharp rise since he was elected, but attributes no credit…

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The Need for Permanence in the Tax Code

from The WSJ, Phil Gramm and Michael Salon, Reagan Cut Taxes, Revenue Boomed:  As inflation plummeted from the CBO’s projected average annual rate of 8.3% for 1982-86 to an average of 3.8%, revenue compared with projections tumbled $22 billion in 1982…

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How Inflation Happens

Kevin Williamson is one of the best economics writers around, especially for a non economist. His style follows in the tradition of Henry Hazlitt and his classic Economics In One Lesson, bringing economic theory into common experiences. This is from latest…

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Economic Reality is Sneaky

Kevin Williamson is one of the best economics writers around, especially for a non economist. His style follows in the tradition of Henry Hazlitt and his classic Economics In One Lesson, bringing economic theory into common experiences. This is from the…

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Prosperity and Inflation

from Steve Forbes, The Fed Needs A New Leader–And New Policies, Too: Yellen openly and unapologetically made clear that our central bank still hews to the discredited theory that prosperity causes inflation. “The economy is operating relatively close to full…

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How to Reduce Inflation to Zero

Kevin Williamson’s Welcome to the Paradise of the Real was written over two years ago and I still refer it to readers.Sneaky Inflation is equal to that piece in bringing sound economic thought to bear on current issues with an engaging style.  Both…

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Stifling Inflation and Productivity

From The Reasons Behind the Obama Non-Recovery by Robert Barro in The Wall Street Journal The main U.S. policy used to counter the Great Recession was increased government transfer payments. Federal social benefits to persons as a ratio to GDP…

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Targeted Inflation

Henry Hazlitt wrote Economics in One Lesson in 1946 and it is still a classic. Hazlitt was a reporter, not a credentialed economist and he brought the dry concepts of economics to the lay reader.  Kevin Williamson, a journalist as…

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Real Inflation

from Stubborn Things, The Symptoms Are Not The Disease excerpts: The difference today is about 2% official inflation (blue) versus about 9% (gray) based on the pre-1982 calculation.  Inflation isn’t absent, it’s just been officially “recalculated” and adjusted away.  Proof of the adage,…

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More ‘Slack’ than We Realize

From Robert Samuelson in The Washington Post, Interest rates and the Fed’s great ‘slack’ debate: Is it time to consider raising rates to preempt higher inflation? The answer depends heavily on the economy’s slack: its capacity to increase production without…

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Driving Up Costs

One of the early signs of the pending economic collapse in 2007 and 2008 was a sharp drop in truck rental rates. As a result of the severe economic downturn the domestic truck fleet shrunk about 9%.  New trucking regulations…

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The Great Debate Part III

More from  Roy Fickling in response to a debate that centers on promoting economic growth verses a more fair and even distribution of wealth.  For a bit about Roy’s experience see The Great Debate  Part I Let’s take socialism to…

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Explaining Huge Deficits with Low Interest Rates

We are living in interesting times.  While the professional economists are trying to figure out what happened we have all become economists of sorts just to try and understand the events that greet us every day. With huge deficits many…

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Financial Observations 08 20 2010

IBM, Johnson and Johnson,  and McDonalds are issuing debt with rates comparable to US government debt and at lower rates than that offered by many foreign governments. What does this mean?  That bond buyers consider blue chip corporations as safe…

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O’Rourke on Inflation

“A government can give all the people something for nothing by simply printing more money.  This doesn’t work, because it makes all the money worth less, as it did in Weimer Germany, Carter America, and Yeltsin Russia.  Inflation is a…

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A Tale of Two Market Crashes

From Thomas Sowell’s Intellectuals and Society “In short, many things that the Federal Reserve, Congress and the two Presidents did (during the market crash of 1929) were counterproductive.  Given these multiple failures of government policy, it is by no means…

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Hidden Inflation

We tend to look at the increase in prices as inflation, but in a situation of fluctuations prices go up and down. What if prices should be going down 3% but instead we see prices increasing 3%.  We see a…

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A Sleeping Liquidity Monster

There are a few indisputable changes in our economy. Credit is tightening. Generally this is good because  lending standards, whether to individuals to buy homes, or to real estate developers or other businesses, were way too lax.  Marginal businesses will…

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