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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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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How Likely is High Inflation? A Comprehensive Analysis

By Olav Dirkmaat on June 25, 2021

Are government handouts behind rising consumer prices and remittances?

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