Share This Article
Post on Facebook
Post on X
Print Article
Email Article
Where’s that Inflation
Inflation is the result of more dollars chasing the same number of (or fewer) goods. As the Nobel laureate Milton Friedman put it, in one of his main contributions to “monetarist” economics, inflation is always and everywhere a monetary phenomenon—that is, it’s caused by an expansion in the supply of money or credit. So why…
•
Related
March’s inflation spike looks alarming, but it's driven entirely by energy shocks. Strip that out and the trend looks largely unchanged.
The Fed’s lack of clear rules makes it vulnerable to outside pressure. A commitment to price stability could force Congress to confront its own excesses.
Inflation is well above two percent, but rate paths haven't moved. The disconnect suggests a shift in how much inflation the Fed is willing to tolerate.
