Inflation or Deflation: Which Is More Likely?

By Olav Dirkmaat on September 2, 2022

Last year, I wrote that the current inflation has a fiscal rather than a monetary origin. In other words, we would not have the same inflation in the absence of fiscal stimulus, while we would have the same inflation in the absence of monetary stimulus. For the same reason, I have affirmed and continue to affirm that I view it as unlikely for current inflation rates to begin to consistently exceed two digits, as was the case in the 1970s. This same pandemic fiscal stimulus has caused serious problems in a variety of markets: sea, land and air freight, electronic products and their components, automobiles, and others, which have added fuel to the inflationary fire. This is the origin of the current inflation we are experiencing, and I will try to make my case with data. The Current Inflation In recent months, the rise in the general price level has…

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Stagflation Returns to the United States

By Luis Pedro Mendizabal on August 25, 2022

Recession and inflation are already here. Will unemployment follow?

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The United States Enters a Recession

By Daniel Fernández on August 19, 2022

The world’s largest economy enters a recession as orthodox economists try to change the definition of recession

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Banking Panic in China

By Daniel Fernández on August 6, 2022

China’s real estate bubble is bursting, and its banks are feeling the effects

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Greedflation: Is Greed the Cause of Inflation?

By Luis Pedro Mendizabal on July 28, 2022

Before acknowledging their mistakes, politicians blame their favorite scapegoat

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El Salvador and Bitcoin: A Love-Hate Story

By Daniel Fernández on July 18, 2022

El Salvador’s affair with Bitcoin has only one purpose: to avoid sovereign bankruptcy

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The Fed Considers a Recession Possible in 2022

By Daniel Fernández on July 2, 2022

Turbulence is looming for the world economy. Even the Fed has indicated that a recession is possible in its forecasts

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Financial Crypto Panic

By Daniel Fernández on June 10, 2022

The world of cryptocurrencies is undergoing its own kind of bank run

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Tether Collapses, and Alarm Bells Ring in the Crypto World

By Daniel Fernández on May 18, 2022

The biggest stablecoin in the market breaks its peg to the dollar

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Sri Lanka’s Environmental Suicide

By Daniel Fernández on May 13, 2022

Sri Lanka’s agricultural production plummets after the whole country was forced to adopt organic farming

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