Quantity of Money and Inflation. Part 5. Confounding for HNO and NFC Associations with CPI – Addendum

Last week’s results show that confounding is possible for correlations of Household and Nonprofit Organization (HNO) Credit changes and Nonfinancial Corporate (NFC) Debt changes with subsequent CPI inflation changes.1 This post adds some detail to those observations.


Image by Arvid Olson from Pixabay

Quantity of Money and Inflation. Part 4. Confounding for HNO and NFC Associations with CPI

Previous results1 show that during a specific inflation surge, Household and Nonprofit Organization (HNO) Credit changes and Nonfinancial Corporate (NFC) Debt changes are correlated with each other and with subsequent CPI inflation changes.  In such situations, confounding of associations are possible.


Image by Alex from Pixabay.