Debt Rattle October 20 2017
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René Magritte Youth 1924 • Fed Flunks Econ 101: Understanding Inflation (MW) • Meet The Bears Predicting Stock Market Doom (CNN) • Catalan Grou
[See the full post at: Debt Rattle October 20 2017]INFLATION
When inflation was high the US and UK changed the way that inflation was measured to reduce it. I have not heard about these methods being changed so is true inflation actually being measured.
The cost of goods is strongly related to the cost of energy used to create it. Oil, coal and natural gas have had their prices hammered so the cost of new goods is reduced.
Online selling has enabled customers to shop around for the cheapest offering and so reducing the price being paid for goods.
Then there is the ‘China effect’ [Globalisation]. Goods made in the western world are being replaced by cheap imports. This may also mask high inflation – if inflation is 6% but imports cause deflation of 6% then zero inflation!
There seems to be few drivers for inflation.
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