Relevant and even prescient commentary on news, politics and the economy.

You searched for: label/deflationary policies

Weak Dollar

…correlation implies that a weak dollar is deflationary and we were all taught in introductory economics that this can not be true. Moreover, if you look at the historic record…

Yield Curve

…I thought I would add this chart to demonstrate my point. At the bottom in December the bond market was discounting a deflationary, depression. Now it is discounting an economic…

The Alpha and the Omega of mid-2007

…Management implosion of 1998, the bursting of the technology bubble in 2000, the disruptions of 9/11 and the 2002 post-Enron deflationary scare in the credit markets. This record suggests that,…

November trade deficit

…of growth– accounting for roughly half of growth in China . Contracting US imports are a major deflationary impact for the world economy that few economic models adequately account for….

Rollercoaster of housing prices

…the worst point of the Depression. And things are even worse than they look. In the deflationary 1930s house prices declined less in real terms. Today inflation is running at…

Real interest rates are negative

…followed has a deflationary effect, I also believe that high oil prices and a low US Dollar have created an inflationary environment as well. More than that, I believe that…

Old Vet looks ahead for more action

Trying to get beyond today’s headlines, and the moves and countermoves in today’s markets, is difficult. However the future beckons, and it’s looking a lot more “deflationary” than “inflationary” which…

Interest Rates: The Very Long View

…however, investors had seen 40 years of inflation without any subsequent deflationary period, and so they demanded greater compensation for current inflation. A second possibility is monetary policy. One important…