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Inflation..? What? We’re in a very low inflation environment right now. The Fed is actually trying to figure out how to get inflation to the target 2% annually.
by tempsy 7y ago
Inflation..? What? We’re in a very low inflation environment right now. The Fed is actually trying to figure out how to get inflation to the target 2% annually. Unclear if they met it or not.
- Gibbon1 7y agoWe've been conditioned to think of inflation as the rising cost of toilet paper and gasoline. But not in other things like stocks, bonds, rents and real estate. In theory the last two are part of orthodox inflation but they are heavily gamed. We've also been conditioned to think in terms of rates but not integrated over time.
- perl4ever 7y agoSome things are more volatile than others. Since nothing can increase in price faster than inflation forever, there's no point in including the volatile things in your index. This is why inflation indexes commonly leave out energy. People say "but everything uses energy!" as if this was a problem - yes, everything uses energy, so the long-run increase in energy prices will be reflected in everything else, so it doesn't need to be explicitly included.
- jimthrow 7y agoWe have had over 2% for the last 3 years. That’s already pretty high