Published: June 2023 In prior articles and newsletters, I’ve explored the causes of consumer price inflation over time. In short, the rate of consumer price inflation in an economy comes from a combination of 1) money supply growth and 2) significant changes in productivity and/or resource abundance. -Periods of fast bank lending or large monetized […]
  • button_masher
    1·
    1 year ago

    Inflation… the known unknown.

    I find this (bit wordy) quote from “The Pretence of Knowledge” apt:

    In the explanation of the working of such structures we can for this reason not replace the information about the individual elements by statistical information, but require full information about each element if from our theory we are to derive specific predictions about individual events. Without such specific information about the individual elements we shall be confined to what on another occasion I have called mere pattern predictions

    Interesting read if severely bored someday… he also talks about how everyone has to claim to know something to try be useful. Think inflation falls into that category…