The full data sets for the 71 years from 1952 to 2022 show no discernable association patterns (correlations) for financial sector debt growth and inflation changes.1 This post continues that analysis by looking specifically at the various regimes of inflation change during the 71-year timeline.
From an image by Qubes Pictures from Pixabay
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.