How Long Will It Take To Tame Inflation?

A question that may be on a number of people’s minds is: How long will it take to tame inflation? Unfortunately, there is very little telling how long it will take the US Federal Reserve, or any other entity or force, to tame inflation especially with respect to the short-term. Part of the reason is because inflation is always part of a complicated economy – an economy with diverse people, businesses, and governmental/fiscal forces in action. Making timing (and hard landing/soft-landing) predictions about inflation is nearly impossible.

To add to the confusion, believe it or not emotions – specifically people’s expectations of inflation – are part of what keeps inflation around. In this inflationary cycle, inflation has stuck around longer than at almost any time in US history; long enough to increase people’s expectations that inflation will not go away quickly. The US Fed had stated one of its original intentions was to lower consumers’ inflationary expectations (but the Fed may have missed this boat due to forces out of its control, namely, the pandemic aftermath).

Continue reading “How Long Will It Take To Tame Inflation?”

A Very Cool Nobel Prize Winner

Under the heading of ICYMI and because of how meaningful this man’s work is to every human being:

The Nobel Prize in Economics, announced a week and a half ago, may be a real yawn for most people.  But this year, the winner is practically a rock star.  He made a cameo appearance in a hit movie with Selena Gomez and has written multiple best-sellers.  His name is Richard Thaler and he is an economist by trade but over the years chose to combine his studies of economics with psychology — and is widely known as “The Father of Behavioral Economics”.  Are you still yawning?  Read on.

Richard Thaler
Source: Personal Financial News

 

Continue reading “A Very Cool Nobel Prize Winner”