One could make a pastime observing the way that so-called ‘expert’ commentators change their commentary as the data unfolds. As one rather lurid prediction fails, their narrative shifts to the next. We have seen this tendency for decades when we consider the way mainstream economists have dealt with Japan. The words shift from those implying immediacy (for example, of insolvency), to those such as ‘could’, ‘might’, ‘perhaps’, ‘under certain conditions’ and more. The topics shift. The commentariat were obsessed with ‘this time is different’ during the GFC and the ‘debt insolvency threshold’ rubbish that the likes of Reinhardt and Rogoff propagated. That is, until they were sprung for spreadsheet incompetence. More recently, we have apparently forgotten how many governments were about to go broke and the mania has shifted to inflation. The data shows some price spikes earlier in the year which set of the dogs. Now, things might be shifting again. It is a pastime following all this. Short memories, no shame is the only requirement that is required to be a mainstream economics commentator. Prescient knowledge is not included in that skill set....Bill Mitchell – billy blog
Inflation is coming, well, it could be, or, it might happen, gosh …
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
“Inflation” in this context is a figure of speech…
ReplyDeleteThe FRA doesn’t even include that word it includes “stable prices” “ as In “maximum employment with stable prices”…
The price goals are a modifier of the nation’s maximum employment policy promulgated in this Law…
Can’t inflationistas read?
Powell is a lawyer he is simply reading the Law and complying with it…
ReplyDeleteWe are millions down from previous employment levels so the Fed is going to remain “accommodative” until they think we are back to maximum employment levels…. Which to them means very low overnight interest rates and buying a significant amount of government securities to help facilitate settlements of those securities which the member banks may not have enough regulatory capital to settle in an emergency situation like we are in with this pandemic..