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The post talks about inflation but doesn't mention which measure it uses. Hmmm... Also, the correlation coefficient 0.15 and an R^2 of 0.02. It means it doesn'
by dmichulke 5y ago
The post talks about inflation but doesn't mention which measure it uses. Hmmm...
Also, the correlation coefficient 0.15 and an R^2 of 0.02. It means it doesn't explain all variance in the inflation but it clearly influences it.
Finally, your last comments sounds like we actually can have a free lunch.
- rory 5y ago"It doesn't explain all the variance" is very a generous way to say "it explains one seventh of the variance". And re: free lunch-- keep in mind that empirical reality isn't affected by our internal sense of fairness. It is possible that we will find free lunches in our existence. Nuclear energy is arguably a kind of free lunch. That said, my last comment was specifically contrasting more sustained M2 expansion, or an expansion of a higher order of magnitude. We don't know exactly what would happen then, but there's a decent possibility of high inflation in that case.
- rory 5y agoOh and it's plain CPI btw. I agree Ivo should have mentioned that.