Caging the Tiger

I think that if Robert Samuelson is going to warn us about impending inflation he has a moral obligation to explain to us why we haven’t seen significant inflation in a very long time. I’ve already given my answer. Inflation isn’t rising. Prices are rising in health care and gasoline and the Northeast had a cold winter. Those may have run-on effects. They may not. But those price increases call for a different policy response than inflation would.

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  • Guarneri Link

    Those citing inflation tend to point towards tighter labor markets and wages. The reported unemployment rate has been a sham for years because of participation ratios. That’s changing.

    Velocity.

    Producer prices and 10+ year bond rates.

    The first two are causes. The third are indicators.

    If I knew I could make a boatload of money in Treasury bond futures…….

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