That's Larry Summers' argument, but it's pretty much been debunked in the de facto world. China has had a large deflationary affect on price inflation because they can produce so much so cheaply and sell it to so many different resellers. Thus demand has not created shortage in finished goods and thus no price inflation i…
That's Larry Summers' argument, but it's pretty much been debunked in the de facto world. China has had a large deflationary affect on price inflation because they can produce so much so cheaply and sell it to so many different resellers. Thus demand has not created shortage in finished goods and thus no price inflation in them.
Also, there is a good argument to be made that commodities, equities and real estate, three major ways cash gets "invested" are causing huge inflationary bubbles that will end up as all bubbles do.
Perhaps you were referring to long term bonds? That would be astute, but it also gets complicated and has to do with maturity times, underlying value the bond represents, and relative interest rates/inflation.
Traditional economic arguments are losing predictability suggesting we don't have a full grasp on inflation...yet. Likely because it is never expressed evenly or in easily measured metrics.
One would think.
That's Larry Summers' argument, but it's pretty much been debunked in the de facto world. China has had a large deflationary affect on price inflation because they can produce so much so cheaply and sell it to so many different resellers. Thus demand has not created shortage in finished goods and thus no price inflation in them.
Also, there is a good argument to be made that commodities, equities and real estate, three major ways cash gets "invested" are causing huge inflationary bubbles that will end up as all bubbles do.
Perhaps you were referring to long term bonds? That would be astute, but it also gets complicated and has to do with maturity times, underlying value the bond represents, and relative interest rates/inflation.
Traditional economic arguments are losing predictability suggesting we don't have a full grasp on inflation...yet. Likely because it is never expressed evenly or in easily measured metrics.