Tag Archives: stagflation

This Recession Won’t Stop It

One solution to inflation is a recession. An economic downturn where people lose their jobs and are forced to tighten their belts would reduce demand for goods and services. This could slow the rate of consumer price inflation. It may even lead to deflation. Continue reading

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This Inflation Script Won’t Last

The Shiller’s cyclically adjusted price-to-earnings (CAPE) ratio for the S&P 500 is currently 34.66. This is representative of a stock market that has lost all touch with reality. It even exceeds the 31.48 CAPE ratio hit in 1929, just before the stock market crashed and the onset of the Great Depression. Continue reading

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Connecting the Dots on Employment and Inflation

One principal conundrum of the extreme monetary policies of the last eight years is on the subject of consumer price inflation.  Expansion of the money supply is, by definition, inflation.  Yet how come, following a quadrupling of the monetary base, … Continue reading

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