The Ultimate Guide to Inflation

#1

Post by jger15 » Sun, May 09, 2021, 8:42 PM UTC

The Ultimate Guide to Inflation
lynalden.com

Re: The Ultimate Guide to Inflation

#2

Post by crb002 » Sun, May 09, 2021, 9:34 PM UTC

M2/Population https://twitter.com/SMT_Solvers/status/1391506520488153091/p...

That is an unprecedented hockey stick.

Re: The Ultimate Guide to Inflation

#3

Post by ubertoop » Sun, May 09, 2021, 9:36 PM UTC

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?

Re: The Ultimate Guide to Inflation

#4

Post by R0b0t1 » Sun, May 09, 2021, 9:39 PM UTC

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?

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 supported by systemic bias in the reporting of economic indicators like GDP.

Re: The Ultimate Guide to Inflation

#5

Post by nabla9 » Sun, May 09, 2021, 9:39 PM UTC

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

Re: The Ultimate Guide to Inflation

#6

Post by treeman79 » Sun, May 09, 2021, 9:40 PM UTC

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.

Re: The Ultimate Guide to Inflation

#7

Post by okoslaatoo » Sun, May 09, 2021, 9:40 PM UTC

inflation 150 years is not enough history. inflation is part of game theory.

Re: The Ultimate Guide to Inflation

#8

Post by okoslaatoo » Sun, May 09, 2021, 9:41 PM UTC

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 upvoted you.

Re: The Ultimate Guide to Inflation

#9

Post by sbelskie » Sun, May 09, 2021, 9:41 PM UTC

crb002 wrote: post #2

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

You’re correct that the recent uptick is unprecedented, but given that the other graph (shared by Nobel prize winning economist) shows no stable relationship between M2 and inflation, why does it matter? He might be wrong and you might be right, but that graph alone doesn’t tell that story.

Re: The Ultimate Guide to Inflation

#10

Post by echelon » Sun, May 09, 2021, 9:41 PM UTC

Downsides aside, won't inflation help exports and keep USD-denominated trade attractive?

It's not like we're the only economy suffering. We might be doing the best of the whole lot.