tag:blogger.com,1999:blog-6616959642391988608.post4048333890048667811..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Producer inflation continues to heat upScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6616959642391988608.post-5562028726550100142011-05-14T08:58:12.166-07:002011-05-14T08:58:12.166-07:00May 13, 2011, 5:52 PM
Inflation Expectations
This...May 13, 2011, 5:52 PM<br />Inflation Expectations<br /><br />This post by Krugman shows inflationary expectations, as measured by TIPS-Treasuries spreads, is now falling. <br /><br />Some observers have been warning about inflation for years. Yet where is it?<br /><br />How do you get inflation with declining unit labor costs and 6 percent steady growth in M2? With falling real estate values? Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48090670771254775102011-05-13T15:46:27.093-07:002011-05-13T15:46:27.093-07:00Inflation-schmaflation.
After we have seen 4 to 5...Inflation-schmaflation.<br /><br />After we have seen 4 to 5 percent real GDP growth for several years straight, then I want to start to worry about inflation.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23343583384852685762011-05-12T13:14:57.177-07:002011-05-12T13:14:57.177-07:00We had deflation briefly in 2008 because the deman...We had deflation briefly in 2008 because the demand for money surged and it took the Fed awhile to realize that. We had an effective shortage of money for awhile, until QE took effect. <br /><br />We can have rising inflation even with M2 growth of only 2%, if and when the velocity of money begins to pick up. <br /><br />Housing rents are already beginning to rise, and there is a lot of buying Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-13781485222183622792011-05-12T13:10:24.198-07:002011-05-12T13:10:24.198-07:00Public Library-
Okay then. If inflation and defla...Public Library-<br /><br />Okay then. If inflation and deflation are exclusively monetary phenoms, explain to me this;<br /><br />How did we have deflation in 2008-10?<br /><br />How do we have hyper-inflation in the future, if M2 grows a 6 percent a year?<br /><br />Can we sustain inflation, if commercial rents and unit labor costs head south, not north?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38715669090694237582011-05-12T11:49:05.350-07:002011-05-12T11:49:05.350-07:00Ben,
Inflation is a monetary phenomenon. It has n...Ben,<br /><br />Inflation is a monetary phenomenon. It has nothing to do with the labor participation rate.<br /><br />Look at Zimbabwe...Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-90148938010474251682011-05-12T11:36:48.220-07:002011-05-12T11:36:48.220-07:00The PPI, though bloated a bit by some temporary pr...The PPI, though bloated a bit by some temporary pressures, is in the same range it was 2002-2007, as you can see from the chart Scott Grannis has provided.<br /><br />Overall CPI was moderate 2002-2007; indeed we soon hit deflation. So the PPI in this range, in the recent past, did not lead to CPI inflation. <br /><br />I wonder if commercial rents (real estate) are included in PPI. Unit labor Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10169520118784176962011-05-12T11:16:12.183-07:002011-05-12T11:16:12.183-07:00Public corporations and Federalism in general will...Public corporations and Federalism in general will find prosperity elusive should states such as California fall into default, which appears imminent at this point...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-87134421887925421782011-05-12T11:06:19.740-07:002011-05-12T11:06:19.740-07:00Macro Confusion: Inflation, Commodities, and the F...Macro Confusion: Inflation, Commodities, and the Fed.<br /><br />http://mises.org/daily/5273/Macro-Confusion-Inflation-Commodities-and-the-Fed<br /><br />We are headed for another debacle. Only questions are when and how to avoid it.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.com