BILS - Is Inflation Or Deflation Coming?
- The inflation number has not gotten out of range, despite the breathtaking increase in the monetary base.
- The mainstream includes all causes of rising prices in their definition of inflation. We differentiate nonmonetary forces pushing up prices from the monetary forces pushing them down. This distinction is important, especially if we want to predict what comes next.
- Monetary force not only cause prices to move, but the resultant price move transmits feedback to that monetary force. It's a positive feedback loop. By contrast, nonmonetary forces are one-time events that cause one-time price adjustments.
For further details see:
Is Inflation Or Deflation Coming?