Was checking on this the

Obey — Fri, 16 Jun 2017 12:06:51 +0000

In reply to The Controversy Over Inflation; “This is one of the most important questions facing monetary policy.”

Was checking on this the other day out of curiosity. There is little inflationary pressure worth mentioning - probably due to the hidden slack in the labor market as the article mentions - but what little pressure there is is due to housing rents and sales-prices rising. Not a bubble (because that would involve a divergence betw rental rates and sales price), just more demand with no corresponding increase in supply, apparently. I'm not sure why the Fed feels it necessary to beat down on increased housing demand in the absence of any suspicious bubble. It makes no sense.

That, in addition to the the whole pretense of having 2% be the target while actually deliberately maintaining it between 1.25% and 1.75% since the financial crisis, makes the whole debate very weird. There is some elephant in the room which everyone seems to be dancing around.

dagblog - Comments for " The Controversy Over Inflation; “This is one of the most important questions facing monetary policy.”"

Was checking on this the