The concern expressed by proponents of higher rates was that the economy was too strong and that inflation would soon be rising above its 2.0 percent target. (Actually, the target is supposed to be an average, which means at the peak of a recovery the inflation rate should be somewhat higher than 2.0 percent.)The March data seems to undermine this concern. While monthly data are erratic, it was striking because both the overall and core rate were negative in the month. The core consumer price index dropped by 0.1 percent in March, its first decline in more than seven years.I think the crash is already here, and we hope it's mild. Dean, too little too late.
Saturday, April 15, 2017
The higher inflation has come and gone, Dean
Dean Baker spouting the old monetary theory:
Posted by Matt Young at 1:06 PM