3 ms·
>My view has been that a pretty solid chunk of inflation has already happened, in the housing market, as measured by the change in house prices since ~Y2K, and
by eli_gottlieb 9y ago
>My view has been that a pretty solid chunk of inflation has already happened, in the housing market, as measured by the change in house prices since ~Y2K, and by the expansion of the Fed's balance sheet by ~2T in MBS purchases.
Asset inflation is a rather distinct thing from across-the-board inflation, which would have to include wages.
- pjmorris 9y agoDeciding whether to buy T-Bills or invest in a hedge fund is an investment decision that a relative few make. Deciding whether to have a roof over your head or not is much more than an investment decision. I reason that asset inflation in house prices is a form of wage deflation. Asset and wage inflation may be distinct theoretical categories, but they affect each other in practice.
- eli_gottlieb 9y agoThat's some very insightful reasoning. Thanks for presenting it that way!