No, I would not call 3.2% annual inflation a problem.
I would call the significantly higher inflation rates of the late 70s and early 80s a major problem, but as I said, volker solved that problem. Since volker, inflation has been generally in the ballpark of 2%.
How is that a problem?
If anything, I think the Fed has crushed the economy a couple of times in the past few decades because of their overemphasis on keeping inflation low.
No, I would not call 3.2% annual inflation a problem.
I would call the significantly higher inflation rates of the late 70s and early 80s a major problem, but as I said, volker solved that problem. Since volker, inflation has been generally in the ballpark of 2%.
How is that a problem?
3.2 % is 50% higher than 2 %. If that is an example of "solving the problem" ..... we're in trouble. Are you in the financial industry, by any chance? They seem to be able to spin any fact into "positive" news.
Leave to emotional Wall Street to cause a stock to drop on rumor alone. This will be the downfall of the stock market at some point ... hopefully there are sufficient stops on place to prevent this. I realize we live in a tabloid world, but at some point, you have to wonder about how these rumors start, and why responsible people don't check facts first.
Comments
No, I would not call 3.2% annual inflation a problem.
I would call the significantly higher inflation rates of the late 70s and early 80s a major problem, but as I said, volker solved that problem. Since volker, inflation has been generally in the ballpark of 2%.
How is that a problem?
If anything, I think the Fed has crushed the economy a couple of times in the past few decades because of their overemphasis on keeping inflation low.
No, I would not call 3.2% annual inflation a problem.
I would call the significantly higher inflation rates of the late 70s and early 80s a major problem, but as I said, volker solved that problem. Since volker, inflation has been generally in the ballpark of 2%.
How is that a problem?
3.2 % is 50% higher than 2 %. If that is an example of "solving the problem" ..... we're in trouble. Are you in the financial industry, by any chance? They seem to be able to spin any fact into "positive" news.