12 ms·
But that’s what the article is really about. It shows how there is an intrinsic link between the rate of inflation and the volatility of that rate YoY.
by ComputerGuru 3y ago
But that’s what the article is really about. It shows how there is an intrinsic link between the rate of inflation and the volatility of that rate YoY.
- LudwigNagasena 3y agoIs that because the inflation is high, or is it because it deviates from the Fed target too far?
- ComputerGuru 3y agoI mean they are inextricably linked cofactors, but given that the observed increase volatility is measured as the absolute value (can be in either direction, i.e. ±) I would venture to say that at least some of it is regardless of Fed (re)action. However, I would also posit that it just doesn't matter since the feds will continue (as they've said and shown) to take action so long as the inflation rate isn't at their target rate, so cofactor A automatically implies cofactor B and we just have to deal with that fallout.
- LudwigNagasena 3y agoThe Fed is not a force of nature, its response to the rise of inflation is absolutely crucial and important for economy, and it is not in any metaphysical way coupled to the rise of inflation — it can act as it pleases.
- ComputerGuru 3y agoFrom our helpless perspective, the Fed might as well be.