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DEFLATION ?
DEFLATION ?
By Spencer, Did you know that over the last six months the compound growth of the total CPI was -5.0%. Of course that is up from January when it was - 5.8%. You have to go back to 1948 to find actual deflation like this, when it bottomed at -4.2%.. Of course much of the deflation was due to ...
Like the Mafia buying "protection"?
themessthatgreenspanmade.blogspot.com — Dr. James Hamilton at Econbrowser comments on the Fed's recent policy announcement and recommends that the central bank buy more Treasury Inflation-Protected Securities. The Fed has accordingly finally settled on an alternative way of framing its ... (more) Like the Mafia buying "protection"?
Bernanke's Grand Experiment Continues
Bernanke's Grand Experiment Continues
globaleconomicanalysis.blogspot.com — We are in the middle of a grand experiment. Bernanke upped the ante today in his foolish quest to beat deflation. Please consider the FOMC Press Release . Information received since the Federal Open Market Committee met in January indicates that the ... (more) Bernanke's Grand Experiment Continues
Still waiting for deflation
Still waiting for deflation
ukhousebubble.blogspot.com — Today's inflation numbers were bad, although you wouldn't know it listening to any journalists. The headline consumer price index increased to 3.2 percent, up from 3 percent in January. So did the retail price index (excluding housing and indirect ... (more) Still waiting for deflation
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The first votes are in
Econbrowser — ... that were also released on Wednesday by the Bureau of Labor Statistics. These numbers show further modest movement away from a deflationary tendency prior to any actions by the Fed. The seasonally adjusted February CPI was 0.4% higher than in January, which would be a 4.8% annual inflation rate if sustained for a year. Although that's plenty for one month, it nevertheless is still substantially smaller in absolute value than the drops seen in October through December. ...

Inflation and relative prices
Econbrowser — ... why we'd be better off today with an inflation rate higher than what we've seen over the last six months. But while a uniform expansion that raised all wages and prices by the same amount would be helpful, what the Fed could actually achieve in the present situation may be something less desirable. ...

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