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9%+0%=9% not zero
What has troubled me of late is that the American pseudo-government seems to think that after 9% inflation a 0% increase leaves you where you were. Actually it leaves you 9% behind [9+0=9%]. Getting back to zero inflation doesn’t start you at scratch.
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What would a modern economist know about economic theory?
I keep pointing out that the last person you should listen to about economic policy is anyone who has had a modern education in economic theory. Here is a bit of proof, from today’s Oz: Dismay at RBA as wages growth goes backwards. Here is the opening line of the article: The person most disappointed with…
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On the brink of an inflationary disaster
Increases in the price level (nowadays referred to as “inflation”) are embedding themselves across much of the world. And I would like to emphasise that it’s not just a money-supply thing. It is essentially caused by the growth of purchasing power relative to the growth in the amount of goods and services available for purchase.…