Inflation and central banks. How are we doin'?
What do u think central banks' mandates are? And if so, and if we use data as an indicator or proxy for their success, as in CPI, how would u say they do.
Btw, most have 2% as a target, as in the Fed and the ECB. Global CPI below.
What do u think central banks' mandates are? And if so, and if we use data as an indicator or proxy for their success, as in CPI, how would u say they do.
Btw, most have 2% as a target, as in the Fed and the ECB. Global CPI below.
The Fed: 2% CPI target.
US current inflation is 6.8%YoY
How many months since it has been past the 2% target? Well, since March 2021.
Okay, will it fall below anytime soon? No.
US current inflation is 6.8%YoY
How many months since it has been past the 2% target? Well, since March 2021.
Okay, will it fall below anytime soon? No.
Is inflation a tax on the poor? Of course it is. This is US inflation growth and US personal income growth.
The price of goods rises faster than income & so it's a squeeze on consumption. Who has a the highest share of consumption relative to income? The POOR & the middle class
The price of goods rises faster than income & so it's a squeeze on consumption. Who has a the highest share of consumption relative to income? The POOR & the middle class
Rich people don't consume much as a share of their income & so ASSET inflation hasn't led to trickle down economics b/c their inflated assets have led them to INVEST more. Smart move but NEGATIVE for trickle down economics.
Inflation is a tax on the poor & middle class.👈
Inflation is a tax on the poor & middle class.👈
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