4 ms·

i am not understand why you have downvote, constant hedonic adjustmint from fed is making inflation disapear. cpi is failing to include many important things an

i am not understand why you have downvote, constant hedonic adjustmint from fed is making inflation disapear. cpi is failing to include many important things and we are therefore have missing much inflation over past years. you must see m1 graph over past year, then tell me there have been less than 2% inflation? https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL

bpodgursky 5y ago
Downvotes here are reflexive. Nobody is actually reading or thinking about the fact that inflation + unindexed cap gains is just a wealth tax.
- imtringued 5y ago
  Considering the state of the US economy over the last 20 years, that's exactly what's needed. You can peddle this idea in countries that are struggling to find investors. It certainly makes sense in economies that are prone to high inflation.
dv_dt 5y ago
The Fed has been targeting 2% inflation for years now, and it has never materialized. Inflation can be caused by money supply expansion, but also economic capacity losses (eg. think chip shortages, climate disasters, and cargo ships stuck in canals).
- bpodgursky 5y ago
  The Fed has also never attempted anything even approaching the QE and stimulus of the past year. It's really completely uncharted territory.
  - dv_dt 5y ago
    The post 2008 QE was 4.3T in the same order of magnitude of the QE of the past year. There was no runaway money supply driven inflation. If you look at work from macro economist Claudia Stam, who as part of the Fed studied the effects of 2008 recession aid programs - her work concludes that we actually have more margin for monetary stimulus and we can alleviate a lot of economic disruption by undertaking that stimulus for valuable infrastructure investments. If one were to compare to 2008 to the pandemic, I'd actually hypothesize that the main inflation driver now is not from QE (though it is affecting the stock market somewhat like it did in 2008), but driven from disrupted lines of production from a mix of pandemic and climate change driven infrastructure disruption. And it's that capacity drop that is pushing most of the inflation we're seeing now.
imtringued 5y ago
>then tell me there have been less than 2% inflation? Good for you because nobody says that there is less than 2% inflation right now. I mean, bad for you because that government manipulation theory is on shaky ground now, the only real issue is that changing the definition of M1 is annoying and breaks the charts. https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm https://www.bls.gov/charts/consumer-price-index/consumer-pri...

bpodgursky 5y ago

Downvotes here are reflexive. Nobody is actually reading or thinking about the fact that inflation + unindexed cap gains is just a wealth tax.

imtringued 5y ago
Considering the state of the US economy over the last 20 years, that's exactly what's needed. You can peddle this idea in countries that are struggling to find investors. It certainly makes sense in economies that are prone to high inflation.

dv_dt 5y ago

The Fed has been targeting 2% inflation for years now, and it has never materialized. Inflation can be caused by money supply expansion, but also economic capacity losses (eg. think chip shortages, climate disasters, and cargo ships stuck in canals).

bpodgursky 5y ago
The Fed has also never attempted anything even approaching the QE and stimulus of the past year. It's really completely uncharted territory.
- dv_dt 5y ago
  The post 2008 QE was 4.3T in the same order of magnitude of the QE of the past year. There was no runaway money supply driven inflation. If you look at work from macro economist Claudia Stam, who as part of the Fed studied the effects of 2008 recession aid programs - her work concludes that we actually have more margin for monetary stimulus and we can alleviate a lot of economic disruption by undertaking that stimulus for valuable infrastructure investments. If one were to compare to 2008 to the pandemic, I'd actually hypothesize that the main inflation driver now is not from QE (though it is affecting the stock market somewhat like it did in 2008), but driven from disrupted lines of production from a mix of pandemic and climate change driven infrastructure disruption. And it's that capacity drop that is pushing most of the inflation we're seeing now.

imtringued 5y ago

>then tell me there have been less than 2% inflation? Good for you because nobody says that there is less than 2% inflation right now. I mean, bad for you because that government manipulation theory is on shaky ground now, the only real issue is that changing the definition of M1 is annoying and breaks the charts. https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm https://www.bls.gov/charts/consumer-price-index/consumer-pri...