Wednesday, November 17, 2010

Core inflation is zero

So the cartoon mocking the Fed, a few posts ago, is not accurate on this issue.

4 comments:

  1. The cartoon is accurate. Core inflation doesn't measure food or energy prices which as groups are very inelastic and so have a disproportionate impact.

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  2. No, the cartoon is wrong. Headline inflation is just above 1% and core inflation is at all time lows...the trends are ominous and QE2 is justified.

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  3. The US is tracking Japan on inflation:

    http://www.nytimes.com/2010/11/20/business/economy/20charts.html?hp

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  4. In addition to the food and energy mentioned in the last post I believe this also includes a suspect value placed on the cost of housing - the housing number is manufactured by the governement and has little to do with reality.

    Trey EMBA 2012

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