It merely underscores what I've been saying for quite some time now: The Fed does not have any control over what consumer price inflation does or does not do.
Despite the insistence of die-hard Austrians who want all inflation to be the result of money printing, the data just does not bear that out. If all consumer price rises were due to…
It merely underscores what I've been saying for quite some time now: The Fed does not have any control over what consumer price inflation does or does not do.
Despite the insistence of die-hard Austrians who want all inflation to be the result of money printing, the data just does not bear that out. If all consumer price rises were due to excess money, the inflation curve would resemble the money supply curve--and it doesn't. Not even a little bit.
There are forces pushing prices up besides the money supply or the velocity of money. The excessive money printing of the past decade surely doesn't help, but, as the stubborn refusal of interest rates to follow inflation, money alone doesn't account for consumer price rises.
But the Fed dare not admit that, otherwise they'll have to answer the question of why they pushed the economy into recession in the first place.
It merely underscores what I've been saying for quite some time now: The Fed does not have any control over what consumer price inflation does or does not do.
Despite the insistence of die-hard Austrians who want all inflation to be the result of money printing, the data just does not bear that out. If all consumer price rises were due to excess money, the inflation curve would resemble the money supply curve--and it doesn't. Not even a little bit.
There are forces pushing prices up besides the money supply or the velocity of money. The excessive money printing of the past decade surely doesn't help, but, as the stubborn refusal of interest rates to follow inflation, money alone doesn't account for consumer price rises.
But the Fed dare not admit that, otherwise they'll have to answer the question of why they pushed the economy into recession in the first place.