Sunday, April 5, 2015

Janet has already raised rates

As near as I can tell we had a mild deflation this quarter, likely a -.25% implicit price deflator. The becomes a real raise in the IOER, by the same amount that the fed planned. So it all works out, except we now have to worry about government tax collection in the midst of deflation.  Will the deflation continue? Sure, why not.

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