Edward Harrison — Baumol’s cost disease, aging societies and inflation expectations

I have been banging on about lowflation, repeatedly suggesting it is here to stay. The Fed, on the other hand begs to differ and is pre-emptively normalizing rates, as a result. No matter how you look at this, there’s a rub though: We all consume different products, so we each experience a different individual inflation rate.

Even as the statistics say inflation is dropping for you and me, it’s not dropping for everybody….

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Baumol’s cost disease, aging societies and inflation expectations
Edward Harrison

Timothy B. Lee — William Baumol, whose famous economic theory explains the modern world, has died

William Baumol — an economist who just died at the age of 95 — had a famous idea, commonly known as Baumol’s cost disease, that explains a lot about our modern world....

Vox

William Baumol, whose famous economic theory explains the modern world, has died

Timothy B. Lee