Core Inflation drops 1st time since '82

iVillage Member
Registered: 09-01-2009
Core Inflation drops 1st time since '82
Fri, 02-19-2010 - 10:26am

Interesting article - especially for agzar, who was always so concerned about inflation re the stimulus or whatever the concern was.

"Taxes are the price we pay for a civilized society."

       Justice Oliver Wendell Holmes

iVillage Member
Registered: 10-28-2009
Fri, 02-19-2010 - 10:33am

LOL! You're welcome.

Edited 2/19/2010 12:23 pm ET by shannon.fannon
iVillage Member
Registered: 02-14-2010
Fri, 02-19-2010 - 2:16pm

I did find this article talking about core inflation:

iVillage Member
Registered: 12-16-2008
Fri, 02-19-2010 - 6:13pm


iVillage Member
Registered: 01-24-2009
Fri, 02-19-2010 - 6:24pm

Liquidity drowns meaning of 'inflation'
By Henry C K Liu

The conventional terms of inflation and deflation are no longer adequate for describing the overall monetary effect of excess liquidity recently released by the US Federal Reserve, the nation's central bank, to deal with the year-long credit crunch.

This is because the approach adopted by the Treasury and the Fed to deal with a financial crisis of unsustainable debt created by excess liquidity is to inject more liquidity in the form of both new public debt and newly created money into the economy and to channel it to debt-laden institutions to reflate a burst debt-driven asset price bubble.

The Treasury does not have any power to create new money. It has to borrow from the credit market, thus shifting private debt