Yes they keep predicting inflation levels way above what reality deliver to them later. Could it be that their models are wrong? – – – NEVER!!! it is reality that is wrong!
I like it: the Hitch-hikers guide to the Galaxy theory of economics: “Economics is definitive. Reality is frequently inaccurate.” Likely to be the core theory behind the launch of a truly breath-taking new school of theoretical economics.
– And that low inflation is a “Moderate Wage increase” problem. Since say 1980 wages have gone up every year below inflation. And that undercuts demand resulting in “low inflation” to outright “deflation”.
– Add to the mix that corporations still seek to increase productivity (= produce the same amount of goods with fewer workers) and it’s quite clear that inflation won’t pick up any time soon.
Yes they keep predicting inflation levels way above what reality deliver to them later. Could it be that their models are wrong? – – – NEVER!!! it is reality that is wrong!
I like it: the Hitch-hikers guide to the Galaxy theory of economics: “Economics is definitive. Reality is frequently inaccurate.” Likely to be the core theory behind the launch of a truly breath-taking new school of theoretical economics.
– And that low inflation is a “Moderate Wage increase” problem. Since say 1980 wages have gone up every year below inflation. And that undercuts demand resulting in “low inflation” to outright “deflation”.
– Add to the mix that corporations still seek to increase productivity (= produce the same amount of goods with fewer workers) and it’s quite clear that inflation won’t pick up any time soon.