Weekend reading on monetarism and its woes. Lots of data.
Do Interest Rate Hikes Worsen Inflation?
Tim Di Muzio is an Associate Professor in International Relations and
Political Economy at the University of Wollongong, Australia.
Economics from the Top Down
Do High Interest Rates Reduce Inflation? A Test of Monetary Faith
Blair Fix
Economics from the Top Down
Do High Interest Rates Reduce Inflation? A Test of Monetary Faith
Blair Fix
4 comments:
Well inflation is a figure of speech so it can be interpreted numerous ways…
“ You may be wondering what exactly the money supply is. In basic terms, it is the creation of new money in the economy – whether it’s physical printed money, or money that exists solely in balance sheets. ”
I’ve taken a lot of Accounting for someone who didn’t major in it and I can tell you I was never taught that “money exists on a balance sheet”…
This guy is another one reifying abstractions…
Whatever the Federal Gov't is now paying out into the private sector with their recently higher interest rates, would certainly tend to work in the direction of supporting inflation.
https://fred.stlouisfed.org/series/A091RC1Q027SBEA
I would think that those payments to foreign entities, intergovernmental and of course to the Fed would have less impact.
Much of the “foreign entities “ are just foreign divisions of US multinationals holding the USDs in offshore accounts to avoid US corporate taxes…
AAPL has like 200b in Ireland…. At 5% now that’s going to create another 10b annual income …. More munnie to buyback shares…
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