I’ve heard that the root cause of inflation is increasing the money supply.
In recent years, the Federal Reserve Bank has been buying government bonds, or in effect, creating money.
The inflation rate has been low because the economy has been in a prolonged slump.
But, if the economy picks up steam, all of this money which has been created out of thin air starts circulating more, and then we will see inflation.
We can have economic growth with low inflation, as we have seen at other times in history, such as the Reagan years.
Can’t wait to see who or what Obama blames inflation on, if we see sharp increases in inflation. I’m sure he would claim credit for an economic rebound, but would seek to cast blame elsewhere for a rebound of inflation.
“if the economy picks up....”
Under obamanomics?!? Bwahahahahahaaaaaa!!!!
The free traders put a lot of the manufacturing sector out of work(90% of whom were non union). There is not now and never will be wage inflation. In the professional sector the H1B program puts a cap on wages there too so NOBODY has wage pricing power, except the politically connected, i.e. government workers etc.