Absolutely true, and I was in no way suggesting that rising prices for homes was good or bad. I've tried to stay neutral on that issue. The point, which is impo

Absolutely true, and I was in no way suggesting that rising prices for homes was good or bad. I've tried to stay neutral on that issue. The point, which is important to this conversation, is that nominal increases in the price of an asset cannot coherently or conceptually be understood as a form of "inflation." The phrase "asset inflation" is one that we can use jokingly and informally, but formally it would not make any sense in any real attempt to judge changes in the standard of living. By contrast, these are all valid questions: Are wages going up faster than the nominal price of homes? Is labor productivity going up faster than the nominal price of homes? Is the share of national income going to labor increasing or decreasing? Is asset wealth increasingly held in liquid or illiquid forms? Is average rent going up faster than average wages?