We need some fricking Inflation!

[Kurt_and_Hunter]

Fed Watch: Is the Fed Eager to Dismiss Deflationary Pressures?

http://economistsview.typepad.com/economistsview/2010/03/fed-watch-is-the-fed-eager-to-dismiss-deflationary-pressures.html


Disinflation in Recessions

http://krugman.blogs.nytimes.com/2010/03/02/disinflation-in-recessions/

[damyank913]

1. Recession + Inflation=Stagflation...

Stagflation is a very bad thing PERIOD (ask those of us that lived through the seventies)

[Kurt_and_Hunter]

2. 1) I did 2) you have no idea what you're talking about.

But thanks for playing.

[damyank913]

4. You're wrong man. Do you have any original thoughts in your head...

Or do they all come from the media? Not everything that's in print is correct. Perhaps if you were old enough in the 70's to have held a job your outlook would be different...

[JVS]

5. The stagflation of the 1970s was caused by price shocks that moved the Phillips curve

In absence of a price shock, the curve holds and we could use the inflation.

[damyank913]

6. I do agree about the price shocks but

I think that the foundation for the stagflation was laid in the 60's. I also think that some of the efforts by the govt to fight inflation might have worsened things. I had an 18% interest rate on my 1st house. The only problem that I have with inflation right now is that I believe we already have some inflation and am worried that it gets to the place that the Fed elevates interest. I'm also worried about the consequenses of all this money being out there. People forget that inflation, once established, can become a self sustaining thing. It's not always easy to turn off.

[DJ13]

3. I think we HAVE inflation

The means of measuring it has been so corrupted by the government over the last 20 years (in order to keep COLA's low) that they arent counting the inflation we have today because most of it are in the categories they disregard because they're "too volatile" (read: it wrecks the phony averaging) like food and energy.

Product sizes decrease while prices remain the same, any bets on whether thats counted as an increase in inflation?

[damyank913]

7. I totally agree.