Average Income.The Bureau of Labor Statisticsreportsthat real (inflation-adjusted) average wages have fallen during the Biden administration (see the attached chart). Conclusion.It is hard to avoid the conclusion that Bidenomics is a disaster. The $1.9 trillion American Rescue Plan in early 2021 ...
How Does Inflation Impact the Effects of Expansionary Monetary Policy and Fiscal Policies on Real GDP Growth?Evidence indicates the magnitudes of the multiplier effects of expansionary monetary and fiscal policies on output are bigger in the low inflation environment and low economic policy uncertainty ...
Itcitedstrainsfromrapidgrowththathadbeguntostretchcurrentaccountdeficitsandspurinflationinsomeregionaleconomies,whichcouldpreventtheircentralbanksfromloweringinterestrates. “Thisimpliesthateconomicvulnerabilitytounexpectedshockswillremainhigh,”thereportsaid,forecastingafurthertighteningofmonetarypolicyincountriessuchasthePhilippi...
Does an elderly economy need to take an MMT pill every morning to find the energy to get out of bed? Put another way, is the 2% inflation target important, or something we can discard, just like the economics profession has de facto with the 60% debt to GDP rule?
all the proportions of this graphshould be monotonic, which they are not. (There’s a trend, but it’s lumpy.) It implies thatAFDC never ended(it did; it was replaced with a smaller, more restrictive program). It implies thatthe welfare rolls can only grow(real benefits fell by almost...
Inflation (INF) 845 1.026 0.016 0.993 1.059 Social Financing Scale (SGDP) 845 0.283 0.052 0.219 0.399 Panel D: Bank’s FinTech Innovation Development Level Index Bank’s FinTech innovation index (FTII) 845 0.018 0.053 0.000 1.000 Bank’s technology foundation index of FinTech innovation (TF...
but also with regard to their inflation and unemployment targets. The fact that there is a dual mandate causes inflation. The whole structure of how they attempt to stabilize prices is messy, with large occasional errors seemingly inevitable, in addition to all the problems you’ve pointed out ...
homes are real securities and mortgages are nominal, there is a disconnect in the accounting. The inflation premium portion of the interest expense is really an arranged saving plan, in real terms. When inflation is high or mortgage levels are high as a % of gdp, savings will be under...
GDP is divided by population to determine personal income, adjusted for inflation with real GDP, and adjusted forpurchasing power parityto control for the impacts of regional price disparities. Real per capita GDP adjusted for purchasing power parity is a heavily refined statistic used to measure tr...
In the long run, the best way to think about money and inflation is with thequantity theory of money. It can be represented by the following formula: MV=PQ, where M is the money supply, V is the velocity of money, P is the general price level, and Q is the real output of the e...