I started this column, or newsletter (whatever you want to call it), with a piece entitled “Who’s To Blame for Inflation: An Answer in Two Pictures”. In that I showed that both government spending and the money supply exploded in the USA in 2021 and 2022. Those are the primary causes of inflation today, in my opinion.
has keeping the FED funds rate low for so many years since the Great Recession had negative effects on the US? Rising inequality from asset price inflation and financial assets outperforming wage growth, and now a high sensitivity to tightening making the FED's job harder?
has keeping the FED funds rate low for so many years since the Great Recession had negative effects on the US? Rising inequality from asset price inflation and financial assets outperforming wage growth, and now a high sensitivity to tightening making the FED's job harder?