Financial Sector Debt and Inflation. Part 4

March 31, 2024Posted inmacroeconomicsNo Comments

This article concludes the analysis of the correlation patterns between Financial Sector Debt (FSD) 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.


Image by Gerd Altmann from Pixabay.

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.