What’s Inflation? It Depends on the Definition

One of today’s economic myths is that the money that the Federal Reserve has created through its quantitative easing programs has not found its way into the money supply, and, as a result, no significant inflation has occurred. The theory is that QE has only resulted in bank reserve creation, but little new money. Money […]

US Economy: Stealth Inflationary Pressures Are Not Yet Priced Into Markets

n countries where central banks are printing money, such as the US, UK, eurozone, and Japan, deflation is the fear. On the other hand, inflation is high in countries where central banks have followed more traditional policies, like Brazil (official inflation 5.9%), India (11.5%), Indonesia (8.4%), and Turkey (7.4%). One explanation is the carry trade. […]

Existing Public Policy Fosters a Growing Income Gap

There is no doubt that the gap between the rich and the middle class and poor has widened in recent years. And the most recent studies confirm a continuation of that trend with capital gains playing a major role. What is ironic is that public policies — some long practiced, some new, — contribute significantly […]