Painless Price Rise

By Econ70 | 05/23/2013
A man in a tuxedo giving a presentation.

Despite the recent rise in house prices and residential shelter costs comprising 32% of the CPI, rising house prices won’t, in the short run, worsen inflation. This is because the CPI does not look at house prices, but rather the cost to rent a dwelling (owner-occupied or rented). And since house prices and rents are…

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Good Vs. Bad Inflation

By Econ70 | 04/21/2011
A logo for reading co-operative bank.

The Fed via QE2 tried to generate inflation but got the wrong kind. Instead of wage inflation or real estate inflation (including house price increases) which causes people to ratchet up their spending because they feel richer, what we have are soaring prices for items that are hard to substitute away from such as energy…

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