Month: January 2016

OPEC Extra Cost

Not stressed enough is the effect the oil price had on economic activity from 1973 to last year. The artificially high price of oil and energy caused GDP growth to be less each year that the economy labored on OPEC-inflated oil costs.

Fed Call for 2 Per Cent Inflation

The Fed’s call for 2% inflation is an indication that economists don’t have a complete economic theory that explains both production and price changes. If they did, they would advocate 0% inflation.

The great bulk of real inflation since 2009 has been in the stock market, making people who already own stock wealthier.