Now that ain't workin'
That's the way you do it
Let me tell you
Them guys ain't dumb
--Dire Straits
This article touches on why inflation, as measured by the Consumer Price Index, is chronically under-reported.
Did you know that the dominant definition of inflation has not always been linked to 'change in prices?' A century ago, inflation was commonly defined in terms of the quantity of money and credit.
You can decide which definition makes more sense...
Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.
ReplyDelete~Warren Buffett