Sunday, April 11, 2021

Kansas City Inflation Coming Soon

This quick quote from a brilliant local scholar reminds us that neither our elected leaders nor experts in economics really know what they're doing whilst awarding truckloads of free money to their political supporters. 

Money line . . . 

Modern Monetary Theory (MMT) says governments have room to rev up their economies with fiscal spending, and argues that inflation -- rather than deficit or debt levels -- is the metric that budget authorities need to keep their eye on.

“One thing the mainstream has caught on to is allowing the economy to run a bit hotter," says Scott Fullwiler, an MMT economist and associate professor at the University of Missouri-Kansas City.

“That’s the thing we’ve been hitting on for decades." Unfortunately, says Fullwiler, economists haven’t devoted enough attention to the question of what a safe maximum speed would be -- and have focused too much on central banks, even though it’s now fiscal policy that is driving recoveries.

Read more . . .

Inflation is the only signal that the post-Covid boom will heed

Meanwhile - as part of a profound shift in economic thinking that's gathered pace in the past year - a whole range of other indicators once relied on to flag trouble ahead are falling out of favor.

8 comments:

Anonymous said...

Big Mac and fries, $86.00.

Thanks Dems!!!! My 401K can now buy me a cup of coffee.

Unknown said...

Inflation is a tax that hits fixed income people, ie retirees, the hardest. You can't spend yourself rich. And governments, federal reserve have a terrible record forecasting the future.

Anonymous said...


Inflation has hit America like a mothertrucker.

Gas has gone from $1.71 a gallon under President Trump to $2.61 a gallon under China Joe Biden.

Grocery food prices have skyrocketed. Restaurants are charging 25% more for meals.

American's savings are being devastated by the Communist Democrat policies of wealth re-distribution with $ trillions of borrowed Federal Reserve funds.

Anonymous said...

^^^^And yet it hasn't.

Gas was both higher and lower than it is now under the orange buffoon.

Grocery prices have not skyrocketed. Some prices have gone up. Others have not.

I seriously doubt restaurant prices are 25% higher, but if they are, and if that's a hardship, there's no law requiring you to eat at restaurants.

Sorry you can't manage your finances, but that's a personal problem.

Anonymous said...

Remember what happened in Germany between WWI and WWII that allowed the Nazi's to take over. Trump, like Hitler, will use it to their advantage. Be careful, D's, what you wish for.

Anonymous said...

And yet Trump will be dead very soon. Weird.

Anonymous said...

Macro economists have a very poor track record of predicting booms and busts. This one is likely no different from the others.

Anonymous said...

The historical problem with inflation is that once the "experts" see it coming, it's already too late to stop.