Government Spending and Inflation. Part 2
This post will address how data sampling affects the analysis results for correlations between U.S. deficit spending and inflation. In Part 11of this series, it was seen that there is significant variability in this correlation over time. It is essential to know whether that variability is affected by changing the data sampling structure. If changes are connected to data treatment, care must be taken to ensure conclusions are fundamental to the overall data and not an artifact of how it is organized.
Image credit: Gerd Altmann from Pixabay2
Government Spending and Inflation. Part 1, Expanded
“Inflation is always and everywhere a monetary phenomenon.”
. – – Milton Friedman1
Nobel laureate Milton Friedman is considered to be the father of monetarism. This macroeconomic theory enjoyed popularity in the late 20th century but has come under increased criticism in the 21st century. Monetary theory is deeply linked to arguments about the causes of inflation. As shown here, there is little data to support Friedman’s theory that government spending generally causes inflation. The issue is not as simple as he made it seem.
Milton Friedman, age 77, 1989. Credit: Encyclopedia Britannica.
Government Spending and Inflation. Part 1
re “Inflation is always and everywhere a monetary phenomenon.”
. – – Milton Friedman1
Note: An updated, expanded, and further edited version has been published here.
Nobel laureate Milton Friedman is considered to be the father of monetarism. This macroeconomic theory enjoyed popularity in the late 20th century but has come under increased criticism in the 21st century. Monetary theory is deeply linked to arguments about the causes of inflation. As shown here, there is little data to support Friedman’s theory that government spending generally causes inflation. The issue is not as simple as he made it seem.
Milton Friedman, 1989. Credit: Encyclopedia Britannica.
February 2023 Economic Forecast: Most Data Shows Little Indication That A Recession Is Coming
Authored by Steven Hansen
EconCurrent‘s Economic Index improved this month but continues to show weak growth. There is a general economic weakness across the board EXCEPT in the area of government and employment. However, except for industrial production (and possibly retail sales) – the data is showing few signs that a recession is coming. Read on to understand the currents affecting our economic growth.
January 2023 Economic Forecast: Our Indicators Predict Little Change In The Rate Of Economic Growth
Authored by Steven Hansen
EconCurrent‘s Economic Index insignificantly improved this month but continues to show the lowest level of growth since the 2020 recession. The ongoing weakness of transport, and imports continues to weigh on our economic forecast. There is no question we live in interesting economic times as the future economic impacts of inflation, pandemics, and the war in Ukraine are unpredictable. Read on to understand the currents affecting our economic growth.
December 2022 Economic Forecast: Our Indicators Predict Continued Moderation Of Economic Growth
Authored by Steven Hansen
EconCurrent‘s Economic Index slowed again this month and continues to show the lowest level of growth since the 2020 recession. The ongoing weakness of transport, and imports continues to weigh on our economic forecast. There is no question we live in interesting economic times as the future economic impacts of inflation and COVID are unpredictable. Read on to understand the currents affecting our economic growth.
How To Stop Inflation Cold
Over the years, I have written in many venues about the extreme importance of four economic rights and responsibilities and their transformation into four Concordian economic policies. My writings on this topic have consistently received the most readers, all over the world.
To my unending surprise, spurred by our immediate needs I have recently discovered
another major—major—ability of Concordian economics. Here it is: With the tools offered by
Concordian economics, we can stop inflation cold.
Let us see how.
