Bondage and Discipline
When inflation rates in most countries soared during the 1970s, economists reacted by developing ad hoc theories about why this was inevitable with discretionary... Read »
Good Deflation/Bad Deflation, Good Inflation/Bad Inflation
I recently attended an economic conference with mostly conservative-leaning economists. Someone had a paper that mentioned how certain types of deflation can actually... Read »
Deflationary Pressures Are Everywhere This Morning
When the precious metals decline there is a very good chance that deflation is taking hold. This morning, both gold and silver are declining sharply lower. This... Read »
The Real Yield: A Critical Factor In The Current Climate
Conventional wisdom says that gold prices are a reliable indicator of the prevailing inflation winds. At best, that’s only a half-truth. The relationship between... Read »
Is Battling Deflation The New New Thing Again?
The week ahead will surely be a stress test. Friday’s downgrade of the U.S. credit rating, although hardly a surprise, seems to have unleashed a higher round... Read »
Do the “Rentiers” Actually Gain from Deflation?
I don’t know the precise definition of this (French?) term, but I’d like to use Paul Krugman’s definition, as I’ll be commenting on his post: Financial securities... Read »
The Weak and the Slow Get Crushed
“We do not now have a problem…. Inflation made here in the U.S. is very, very low” -Federal Reserve Chairman Ben S. Bernanke, February 10, 2011 “Inflation... Read »
Putting QE2 to the Test
The first big test of the Fed’s latest phase of monetary stimulus (a.k.a. QE2) begins, well, now. The jury’s still out on the final verdict, but for... Read »
Commodity Inflation
I guess now we know that the Fed has the tools to prevent deflation. Recent research by Ke Tang and Wei Xiong documents that the correlation between the price changes... Read »
Deflation Worries Weren’t Misguided
Today’s update on September consumer price inflation suggests that the worries about deflation in recent months weren’t misguided. Although consumer prices overall... Read »






