If you look back on our posts over the last two years we have discussed why inflation might become a concern and related matters since 2020. It has happened, February CPI at 7.9% is the highest since 1982 and it may grow higher. What may turn out to be transitory is our commitment to lowering it after markets react. Or will the concern of higher prices force action. Things are going to get interesting. … [Read more...]
Let’s get real, even transitory “high inflation” can be painful
A couple of points that I believe should be emphasized in the discussion about transitory high inflation are that these price increases are likely permanent, and even transitory high inflation can materially affect a person’s standard of living. After the arbitrary time period called “transitory” when we have the arbitrary price increases called “high inflation”, prices will continue to rise at the slower “not high inflation” rate (disinflation) unless we get deflation. Deflation, when measured … [Read more...]