Monday, June 5, 2017

Looks like inflation is a once a year event

The latest look at the implicit price deflator.  Each year it does a cycle, mostly collapsing in Q3.  This inflation looks mostly like government keeping up with its COLAs once a year using debt.

Whatever it is, there is no sign that government has any multiplier greater than 1.  This pattern is a one color ledger service of folks waiting for their government check.

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