Category Archives: Inflation

This category provides commentary on the release of inflation data by national statistical agencies

Monetary policy has failed – we must reprioritise fiscal policy

Remember back in early 2009, when the then head of the European Central Bank Jean-Claude Trichet (boasted that the “euro … is a success … it helps to secure prosperity in participating states”. He was still making these claims in … Read the rest of this entry »

Posted in Central banking, Eurozone, Fiscal Statements, Inflation | 6 Comments

Operationalising core MMT principles – Part 1

Things seem to come in cycles. We have been at this for some years now – trying to articulate the principles of Modern Monetary Theory (MMT) in various ways in various fora. There is now a solid academic literature – … Read the rest of this entry »

Posted in Debriefing 101, Fiscal Statements, Inflation, Job Guarantee | 16 Comments

Australian inflation data defies mainstream macro predictions – again

One of the on-going myths that mainstream (New Keynesian) economists propagate is that monetary policy (adjusting of interest rates) is an effective way to manage the economic cycle. They claim that central banks can effectively manipulate total spending by adjusting … Read the rest of this entry »

Posted in Central banking, Inflation | 13 Comments

MMT is just plain good economics – Part 2

I am surprised at the hostility that Part 1 in this series created. I have received a lot of E-mails about it, many of which contained just a few words, the most recurring being Turkey! One character obviously needed to … Read the rest of this entry »

Posted in Britain, Central banking, Fiscal Statements, Framing and Language, Inflation, UK Economy | 42 Comments

Australian inflation outlook benign – room for fiscal stimulus

Central banks around the world have been demonstrating how weak monetary policy is in trying to stimulate demand. They have been building up their balance sheets (massively) by creating reserves in return for government and corporate paper in an attempt … Read the rest of this entry »

Posted in Central banking, Inflation | 12 Comments

Australian inflation rate – trending down and reflecting a weak economy

The newly-elected conservative Australian government has resumed office with further calls for public spending cuts. Today’s Australian Bureau of Statistics inflation data should disabuse them of this idea. The Australian Bureau of Statistics released the Consumer Price Index, Australia – … Read the rest of this entry »

Posted in Inflation | 1 Comment

Australia is caught in a cyclical malaise – there is nothing ‘new normal’ about it

There was another article in the financial media this weekend running the hypothesis that the stagnant economic conditions that Australia has found itself in is a “new normal”. This is now a repeating theme. I disagree with it. It ignores … Read the rest of this entry »

Posted in Economics, Fiscal Statements, IMF, Inflation, Labour costs | 8 Comments

Australia enters the deflation league of sorry nations

The smug Australian government – conservative to the core, dishonest on a daily basis, running a daily scare campaign that all that matters is the fiscal deficit and how our AAA rating from the (corrupt) rating agencies will be lost … Read the rest of this entry »

Posted in Fiscal Statements, Inflation | 5 Comments

Is exchange rate depreciation inflationary?

One of the first things that conservatives (and most economists which is typically a highly overlapping set) raise when Modern Monetary Theory (MMT) proponents suggest that increased deficits are essential to reduce mass unemployment is the so-called balance of payments … Read the rest of this entry »

Posted in Demise of the Left, Hyperinflation, Inflation | 25 Comments

Overt Monetary Financing – again

Adair Turner has just released a new paper – The Case for Monetary Finance – An Essentially Political Issue – which he presented at the 16th Jacques Polak Annual Research Conference, hosted by the IMF in Washington on November 5-6, … Read the rest of this entry »

Posted in Central banking, Economics, Hyperinflation, Inflation | 46 Comments