>Since you seem quite interested in learning economic fundamentals, I highly recommend you check out the Moody's Talks Inside Economics podcast [0].
Sweet thanks or the recommendation!
>One topic they have discussed with fair regularity lately is the current inflation rate. They point out that you can tease out what factors contribute to that 7% inflation number, and once you subtract out 2-3 specific components, components that – with some inductive reasoning – we have good reason to believe are transitory in nature, the inflation number that applies to the broad majority of fundamentals is actually closer to the fed's 2% target.
That's kind of the complicated thing about these metrics. CPI is often criticized because they already ignore beyond important factors. Like Housing isnt included in CPI? That sure makes CPI a much lower value measurement.
Then people continue to cut out of CPI and oh look we're at 2%? No, we're not. The actual 7% is already too low, the actual number is most likely higher.
>I'm not an expert in this area and I don't grok the economics on a deep enough level to be able to reproduce their argument in situ here, but their case that the fed's strategy of holding steady is in fact the most responsible thing to do to achieve that 2% target.
The Fed in the USA is politically handcuffed and they understand what's happening. There's a geopolitical approach going on, there's a boomer retirement going on, pandemic. lots of factors.
Sweet thanks or the recommendation!
>One topic they have discussed with fair regularity lately is the current inflation rate. They point out that you can tease out what factors contribute to that 7% inflation number, and once you subtract out 2-3 specific components, components that – with some inductive reasoning – we have good reason to believe are transitory in nature, the inflation number that applies to the broad majority of fundamentals is actually closer to the fed's 2% target.
That's kind of the complicated thing about these metrics. CPI is often criticized because they already ignore beyond important factors. Like Housing isnt included in CPI? That sure makes CPI a much lower value measurement.
Then people continue to cut out of CPI and oh look we're at 2%? No, we're not. The actual 7% is already too low, the actual number is most likely higher.
>I'm not an expert in this area and I don't grok the economics on a deep enough level to be able to reproduce their argument in situ here, but their case that the fed's strategy of holding steady is in fact the most responsible thing to do to achieve that 2% target.
The Fed in the USA is politically handcuffed and they understand what's happening. There's a geopolitical approach going on, there's a boomer retirement going on, pandemic. lots of factors.