central banks

Testing The Supply Chain Inflation Hypothesis The Real Money Way

By Jeffrey P. Snider|2021-12-14T18:44:35-05:00December 14th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Basic intuition says this is a no-brainer. Producer prices rise, businesses then pass along these higher input costs to their customers in the form of consumer price “inflation” so as to preserve profits. This is the supply chain hypothesis. Statistically, we’d therefore expect the PPI to lead the CPI.And this was expected for much of Economics’ history, taken for granted [...]

Don’t Low Rates On Junk Bonds Mean Fed-fueled Credit Bubble? No. Precisely The Opposite.

Despite what we’ve all been taught, and what gets reinforced in the media, it’s not really that difficult to get people to see the interest rate fallacy at least where it all starts. Central bankers say that low rates are stimulus when this runs contrary to every bit of historical experience as well as evidence. Yes, they are lying to [...]

Testing The Supply Chain Inflation Hypothesis The Real Money Way

Don’t Low Rates On Junk Bonds Mean Fed-fueled Credit Bubble? No. Precisely The Opposite.

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