Inflation is Always and Everywhere an Interest-Rate Phenomenon
Credit Risk Spillover Between Financials and Sovereigns in the Euro Area During 2007-2015 by ritholtz1 The post Inflation is Always and Everywhere an Interest-Rate Phenomenon appeared first on The Big...
View ArticleIs Gold a Store of Value or an Investment?
I don’t hate gold. That may be hard for some of you to believe. You have read critical things from me about gold, the miners and the quasi-religious fervor surrounding the shiny yellow metal. Some of...
View ArticleInflation: Things You Need vs Things You Want
Technology, Outsourcing, Regulations, Competition: I find the chart below utterly fascinating (more on this later this week). click for no damned reason at all Source: AEI Source: AEI The post...
View ArticleInflation (if you look in the right places)
Inflation isn’t dead; it just might not be where you think it is. To find significant price increases, you need only look in the right places. There are many goods and services with rising prices, as...
View ArticleWhither Inflation Targeting?
Whither Inflation Targeting? By John C. Williams, President and CEO, Federal Reserve Bank of San Francisco Presentation to the Hayek Group September 6, 2016 Good evening; it’s a pleasure to be...
View ArticleWhy Better Wages Are Tied to Healthcare Costs
Real, or inflation-adjusted, compensation has risen 61 percent since 1970; wages, on the other hand, have increased less than 3 percent in real terms in that period. This is a tale that has gotten...
View ArticleTIPS Liquidity and the Outlook for Inflation
TIPS Liquidity and the Outlook for Inflation Martin M. Andreasen and Jens H.E. Christensen 2016-25 | November 21, 2016 The prices of special securities known as TIPS can give some insight into how...
View ArticleThe TIPS Liquidity Premium
The post The TIPS Liquidity Premium appeared first on The Big Picture.
View ArticleSound, Rational Analysis > Blind Ideology
@TBPInvictus here: June 11 is an interesting anniversary. 3 days from now 8 years ago, Art Laffer penned his dead-wrong op-ed in the Wall St. Journal. Here’s Barry: BR: One of the things I frequently...
View ArticleWas There a Great Moderation for Inflation Volatility?
Was There a Great Moderation for Inflation Volatility? Edward Hulseman and Alan Detmeister Federal Reserve Board June 29, 2017 Most accounts of the “Great Moderation”–a decline in macroeconomic...
View ArticleValue of $100 in Metropolitan Areas
The Tax Foundation has an interesting graphic, showing purchasing power differences at the metropolitan level, i.e., how far $100 dollar goes city by city. Two caveats: Everything you buy at retail is...
View ArticleA Short History of Inflation since the Founding of the U.S.
A Short History of Prices, Inflation since the Founding of the U.S. Fernando M. Martin Federal Reserve Bank of St. Louis, Q2 2017 Economists generally agree that a central bank that is...
View ArticleWhat’s Down with Inflation?
What’s Down with Inflation? Tim Mahedy and Adam Shapiro FRBSF Economic Letter, November 27, 2017 After eight years of economic recovery, inflation remains below the FOMC’s target. Dissecting the...
View ArticleSocial Security Cuts Will Pay For Tax Reform
There’s an Increase Hiding in the Republican Tax Cuts Changing how inflation is measured could cut increases in future Social Security benefits and push people into higher tax brackets Bloomberg,...
View ArticleHave Inflation Dynamics Changed?
Have Inflation Dynamics Changed? Edward S. Knotek II Federal Reserve Bank of Cleveland, 11.28.17 Using a flexible statistical model to project inflation outcomes into the future, this...
View ArticleEffects of Inflation on Market Capitalization
Source: NYTimes Fascinating pair of charts from NYT showing the impact of inflation on relative market cap. Look at the inflation adjusted differences between Cisco (#4 inflation adjusted vs #7 not...
View ArticleWhy Is Inflation So Low?
Why Is Inflation So Low? Juan M. Sánchez, Hee Sung Kim Regional Economist, St. Louis Fed First Quarter 2018 The U.S. inflation rate has been below the Fed’s 2 percent inflation target since 2012....
View ArticleInflation: Price Changes 1997 to 2017
Source: AEI I have shown versions of this chart before (see this and this) but the update is worth reviewing given that some people have been blaming inflation generally and rising wages in...
View ArticleHow Stocks Correlate With Higher Interest Rates
Sources: LPL, Bloomberg We have discussed this many times before, but once more: equities tend to move higher with inflation and rates. This is especially true when we move from low rates in a low...
View ArticleBloomberg: Why Inflation Is Not a Problem (Yet)
Why to Keep Your Inflation Anxiety in Check Yes, prices are rising faster, but all signs suggest it won’t amount to much. Bloomberg, June 18, 2018 For those feeling the vague pangs of inflation...
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