We're always keen to highlight attempts by the media to provide perspective on that black hole of economic concepts known as INFLATION. This time the Wall Street Journal has a crack that is pretty good and provides some nice quotes like:
"The Fed controls but one head, with others harnessed to the expectations of consumers and businesses, the effects of demographics, policies of government spending and taxation, and an increasingly globalized world where at least some price-setting for goods, services and wages can happen internationally."
With the Philips Curve relationship between employment and inflation not proving consistent it is energy cost inputs are that the most relevant indicator. All the more reason to take action to support more diversified sources so that no one sector, ie oil and gas, affect the market negatively.
"The Fed controls but one head, with others harnessed to the expectations of consumers and businesses, the effects of demographics, policies of government spending and taxation, and an increasingly globalized world where at least some price-setting for goods, services and wages can happen internationally."
With the Philips Curve relationship between employment and inflation not proving consistent it is energy cost inputs are that the most relevant indicator. All the more reason to take action to support more diversified sources so that no one sector, ie oil and gas, affect the market negatively.
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