International Commodity Markets
Surely though since these international markets (the market for oil for instance) are conducted in US dollars if the supply of dollars goes up relative to the supply of the commodity, then relative...
View ArticleOil and Food Prices Have Risen Against ALL Currencies
Tom, the fact that items are often (not always) prices in dollars is irrelevant. It is just a unit of account. The price of these commodities has risen measured in euros,yuan and other currencies also....
View Articlewage inflation
The inflation the Fed usually worries about is wage inflation and wage-price spirals. Wage-price spirals are unlikely to form with with unemployment over 8 percent. In fact, wages for the Middle Class...
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If prices rise because of a shortage of oil or grain, the Fed will feel the pressure, whatever Fed officials or economists say. Will the Fed be able to resist it? Remember, Bernanke's term is up in...
View Articleinflation, demand, prices, wages....
to get wage inflation without price inflation is kind of weird...this would be essentially a mistake with 20% real unemployment, to get somehow firms to pay more money...the goal of QE on the other...
View ArticleQE IS the cause of higher commodity prices
I am so sick and tired of the rise in commodity prices being blamed on wars, weather, Martians, or everything else BUT cheap money. QE IS the major cause of commodity price spikes and it's high time we...
View ArticleThanks, Dean
Thanks for your answer, Dean. But if the dollar falls in value relative to commodities, isn't that essentially the same thing as inflation to a non-economist? If we double the amount of dollars but...
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Brad DeLong today reminds us Ritholtz's this take down of a WaPo column published four years ago, adding this comment: "...publishing this piece alone makes it a sin to pay money to the Washington Post...
View ArticleSorry - bad proof reading - corrected now
written by John Q, September 14, 2012 12:33 Brad DeLong today reminds us of Ritholtz's take down of a WaPo column published four years ago, adding this comment: "...publishing this piece alone makes it...
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Yes, if the dollar is devalued that means US consumers will pay more for foreign goods, including oil - but foreigners will pay less for US goods. So when Dean Baker, Krugman or anyone else calls for a...
View ArticleInflation and Real Wages
Skeptonomist, I am not denying that inflation is the mechanism through which real wages fall -- nominal wages rarely decline -- the question is whether more inflation means sharper declines in real...
View Articletheory vs. reality
Thank you for your reponse, even if I disagree. Theory is one thing but practice is another. Did some brand new supply disruption occur at 12:35 p.m. EST yesterday when oil futures prices stopped...
View Articletens of millions of people have refinanced mortgages
Mike_in _Fl, actually there have been some events in the Middle East that would cause concern about oil prices. But looking at the longer term trend, which is all us normal gas consumers would worry...
View Articleqe, does it help the poor, working people or the lower middle class?
nope, only the wealthy & the stock market. it won't create jobs. wages & salaries adjusted for inflation are actually lower than they were 40 years ago. the economy cannot improve without...
View Articlere: Mike_in_Fl
QE enabled re-fi's? Not the low fed rate? How did you parse the relative impact of each on the re-fi market? - 99 tries
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I tend to agree that more inflation would probably be a good thing at the moment, but this depends very much on what causes the inflation. During WW II wages went very high because of a shortage of...
View ArticleCommodity prices
Dean, Do you not agree that if the supply of dollars increases increases, the in-dollars price of a commodity in fixed supply should rise as well? If so, the only way I can make sense of what you are...
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