Previous work has shown that the correlation between US federal government deficit spending and CPI inflation fluctuates widely and wildly over time. Results vary depending on data sample selection. That leads to the present decision to look specifically at each instance of inflation, disinflation, and deflation.
This week we examine take a deep dive into what can be learned from examining the unsmoothed data for correlation of deficit spending and CPI inflation. As before, we are looking at the years 2014-2022.
Credit: From a photo by Carlos Muza on Unsplash.1
Note: This was posted at 4:24 pm on March 26 with some incomplete sections. Updating in was completed at 2:52 am March 28.
In previous parts of this discussion, we have made some qualitative observations about relationships involving the correlations between U.S. federal government spending and inflation in the U.S. economy. For the first time in this series, we will move into the arena of quantitative measurements of government spending and inflation correlations.
Credit: Photo by Mahdi Soheili on Unsplash
