The government likes to tell us there is little-to-no inflation. They point to the Consumer Price Index (CPI) hovering at 1-2% as proof inflation is under control. Yes, inflation has been coming down since the late 1980s, but you and I know the CPI or any other inflation index the ...
However, I think it is problematic to raise inflation targets just at the time when inflation’s already rather high. It smacks of an act of convenience rather than anything else. And it also, I think, reflects a loss of institutional memory about what inflation do...
Why doesn't minimum wage keep up with inflation? Should it rise when everyone else gets a COLA? Why do unions support minimum wages, and how does an increase in the minimum wage increase the demand (not necessarily wages) for union labor? Explain with economic reasoning only...
Why does the Fed watch both inflation and unemployment? Why could a system of flexible exchange rates be inflationary? Why is it considered important to remain at a moderate (around 2%) inflation rate in the economy? Why has the minimum wage not kept up with inflation over the past few dec...
Inflationis good when it is mild. There are two situations where this occurs. The first is wheninflation makes consumers expect prices to continue rising.When prices are going up, people want to buy now rather than pay more later. This increases demand in the short term. As a result, stor...
It’s clear that the policy makers are finding it difficult to really get the economy revved up to the levels they want to see. As a result, some people expect government stimulus to continue for a while. If the stimulus does persist, that may or may not result in higher inflation. As...
Not only does the easy-money policy raise the prices of existing goods, but monetary inflation also gives rise to the production of goods and assets which would otherwise not be the case. These goods are not demanded in those amounts and/or prices by consumers. Once the central bank ...
The compensation paid to America’s chief executives keeps increasing at a handsome rate. The phenomenon is a puzzler because pay inflation is slowing dramatically in the lower ranks (see chart). Why is the boss’s pay exempt from the general trend? The reasons turn out to be considerably mo...
A rapidly changing AI industry and still-elevated inflation are among developments investors are facing this year. Kate StalterJan. 30, 2025 Oil Stocks Closely Tied to Crude Prices These oil stocks have the highest correlation to crude prices. ...
Scott Pelley: Inflation is one thing. Prices are another. And I wonder if there's any reason to believe that people will see the prices of things decline? Jerome Powell: So the prices of some things will decline. Others will go up. But we don't expect to see a decline in the overal...