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The Ultimate Guide to Inflation

lynalden.com

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Re: The Ultimate Guide to Inflation

#11

Post by dlp211 »

R0b0t1 wrote: post #4
ubertoop wrote: post #3

Earlier quoted context omitted.

Interesting but, I don't really think I understand what this is. Would you mind explaining it in lay terms?

It describes a very sharp increase in created money. The poster of the linked tweet is implying this is unique and we will see negative economic effects (like inflation) because of it. Parent to that tweet is arguing we have not seen those effects despite past federal reserve action and so there is no worry. The wider context to this conversation is that some people [who?] believe federal reserve policy is flawed and…

It's not created money. We didn't just print this money. The money is printed on collateral, that is private industry traded assets for US dollars.

This graph also completely ignores that the US dollar is the de facto reserve currency of the world, so dividing dollars by US population is fairly meaningless in 2021.

Re: The Ultimate Guide to Inflation

#12

Post by lotsofpulp »

Good article with lots of data. I would like to see data on price increases by category of household expenses broken down by metro region of the US going back 3 or 4 decades.

I feel like nationwide statistics are not very useful once the gap between certain regions gets so wide.

Re: The Ultimate Guide to Inflation

#15

Post by lotsofpulp »

treeman79 wrote: post #6

Didn’t see healthcare. My dads carefully planned retirement was ruined because he never imagined how expensive it would get. I pay 1400 a month for a family. Still doesn’t cover a lot.

I have no idea how families that earn less than $100k are saving enough money for healthcare expenses / loss of income in their years between 50 and 65 (or whatever age Medicare will start at in the future).

Unless you have a cushy government job with those benefits or a high paying white collar job, those years are the most likely for you to lose income due to age, health reasons, etc and any new job you get probably won’t have any benefits, or decent ones.

Re: The Ultimate Guide to Inflation

#16

Post by anm89 »

So awesome to see Lyn Alden at the top of Hacker News. She is an absolute genius!

If you aren't familiar with her work and thinking I think a good introduction interview is: https://www.youtube.com/watch?v=f_JmGLMjIOk&t=35s

Fun fact: She is an electrical / industrial engineer by trade, not an economist.

Re: The Ultimate Guide to Inflation

#18

Post by lottin »

ubertoop wrote: post #3
crb002 wrote: post #2

M2/Population https://twitter.com/SMT_Solvers/status/1391506520488153091/p... That is an unprecedented hockey stick.

Interesting but, I don't really think I understand what this is. Would you mind explaining it in lay terms?

M2 is a measure of the money supply. There are different measures of the money supply, which roughly speaking are M0 (cash), M1 (M0+current accounts), M2 (M1+savings accounts) and M3 (M2+money market instruments). The fact that they have divided M2 by the population seems a little strange, but basically the graphic shows the amount of "money" (cash+current accounts) per person over a time period in the US.

Re: The Ultimate Guide to Inflation

#19

Post by [deleted] »

nabla9 wrote: post #5
crb002 wrote: post #2

M2/Population https://twitter.com/SMT_Solvers/status/1391506520488153091/p... That is an unprecedented hockey stick.

That hockey stick is neutralized by reverse hokey stick. Velocity of M2 Money Stock/Population https://fred.stlouisfed.org/graph/fredgraph.png?g=DPfD

[deleted]

Re: The Ultimate Guide to Inflation

#20

Post by crb002 »

nabla9 wrote: post #5
crb002 wrote: post #2

M2/Population https://twitter.com/SMT_Solvers/status/1391506520488153091/p... That is an unprecedented hockey stick.

That hockey stick is neutralized by reverse hokey stick. Velocity of M2 Money Stock/Population https://fred.stlouisfed.org/graph/fredgraph.png?g=DPfD

https://fred.stlouisfed.org/graph/?g=DPg0 <-- I added the population velocity.
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