Previous posts have summarized the correlations for U.S. federal government deficit spending with inflation1 and deflation2 over the years from 1914-2022. In this article, the correlations of deficit spending with inflation are determined for the years not part of significant inflation surges (up or down).
From a photo by Haran Amorim on Unsplash
This is the second of two posts to analyze the eleven significant deflationary periods for the years 1914-2022. The first post was Part 14A.1
From image by Nicolae Baltatescu from Pixabay
This is a continuation of the analysis of each significant period of rising inflation since 1914. The first part1 covered the years up to the start of World War II. In this post, we cover the inflationary periods following World War II through 2022.
Photo by Alexander Grey on Unsplash.
After failing to find systematic relationships between consumer inflation and federal deficit spending, this is the start of looking at each period of significant inflation and disinflation individually.
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Note: This article was originally posted on May 7, 2023. The Analysis and Conclusion sections were completed on May 8. The final additions to the Appendix were made on May 9.
Previously,1 encouraging results were obtained when correlation analysis was restricted to periods of significant inflation or disinflation. In this post, we examine what can be learned about the correlation between deficit spending and inflation when timeline adjustment of the data is implemented.
Credit: Image by Gerd Altmann from Pixabay