Financial Sector Debt and Inflation. Part 3

March 24, 2024Posted inmacroeconomicsNo Comments

The full data sets for the 71 years from 1952 to 2022 show no discernable association patterns (correlations) for financial sector debt (FSD) and inflation changes.1  Thus, we started an analysis by looking specifically at the various regimes of inflation change during the 71-year timeline.  The most recent post2 analyzed the eight time periods over 71 years with positive inflation surges.  This article analyzes the association of FSD during the five periods from 1952 to 2022 with negative inflation (disinflation/deflation) surges.


Photo by Ehud Neuhaus on Unsplash.

Financial Sector Debt and Inflation. Part 1

March 10, 2024Posted inmacroeconomicsNo Comments

We have found that the correlation relationships between various types of credit and inflation are variable over time.  So far, the kinds of credit studied are government spending,1 consumer credit,2 mortgage debt,3 and nonfinancial corporate credit.4  Here, we address another category of credit spending, Financial Sector Debt (FSD). This series studies the correlation between changes in Financial Sector Debt and CPI inflation.


Photo by Chenyu Guan on Unsplash.

Nonfinancial Corporate Credit and Inflation: Part 4

March 3, 2024Posted inmacroeconomicsNo Comments

This article concludes the analysis of the correlation patterns between Nonfinancial Corporate Credit (NFC) and Consumer Inflation (CPI).  The last of the three types of inflation patterns (time periods with no significant inflation trends) is the subject of analysis here.  The other two types of patterns (inflation surges1 and disinflation/deflation surges2) were analyzed previously.  The conclusion discusses the correlation patterns for all time periods, looks for any common threads, and identifies important differences across time periods and types of correlation patterns.


From a photo by Josue Isai Ramos Figueroa on Unsplash.

Nonfinancial Corporate Credit and Inflation: Part 3

February 25, 2024Posted inUncategorizedNo Comments

The full data sets for the 71 years from 1952 to 2022 show no discernable association patterns (correlations) for nonfinancial credit growth and inflation changes.1  Thus, we started an analysis by looking specifically at the various regimes of inflation change during the 71-year timeline.  The most recent post2 analyzed the eight time periods over 71 years with positive inflation surges.  This article analyzes the five periods for 1952-2022 with negative inflation (disinflation/deflation) surges.


Photo by Dennis Siqueira on Unsplash.

Nonfinancial Corporate Credit and Inflation: Part 1

February 11, 2024Posted ineconomicsNo Comments

We have found that the correlation relationships between various types of credit and inflation are variable over time.  So far, the kinds of credit studied are government spending,1 consumer credit,2 and mortgage debt.3 Here, we address another category of credit spending, Nonfinancial Corporate Credit. This series studies the correlation between Nonfinancial Corporate Credit and CPI inflation.


Image by THAM YUAN YUAN from Pixabay.

Adventures With 3 Coin Flips. Part 8: Complex Systems (First Pass)

January 7, 2024Posted ineconomicsNo Comments

NOTE:  This preliminary draft has been revised and expanded.  The finished article can be seen here.

The preceding post, Part 7, introduced some concepts applicable to complex system analysis. These included representations of reality and a property called ergodicity.  This article delves more deeply into the challenges that arise from these sources in modeling complex systems.