What "basic economics" is that?
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Key inflation indicator posts biggest year-over-year gain in nearly three decades
- Thread starter Legion
- Start date
What "basic economics" is that?
What "basic economics" is that?
Called Laws of Supply and Demand, most learned them in high school, apparently you were out attending a Hitler youth meeting at the time
Surging inflation is creating a conundrum for the Federal Reserve, economist Nouriel Roubini cautioned, adding that spiking prices will persist and potentially tie the central bank's hands.
Although the Fed insists the effects are "transitory," Roubini — also known as "Dr. Doom" for his gloomy economic predictions — warned that the central bank won't be able to tighten monetary policy to slow down overheated economic growth.
“I’m on the side of those who believe that the rise in inflation is not going to be temporary, is going to be more persistent," Roubini told Yahoo Finance Live. "We have a massive monetary and fiscal stimulus, much bigger and more protracted than we had after the global financial crisis.”
The NYU economics professor pointed to a host of factors.
In addition, Corporate America has warned on earnings calls that input costs are rising, along with jumps in commodity prices, home prices, and food prices.
“Inflation expectations are rising, the dollar is weakening, and that implies imported inflation and higher dollar price of commodities. And the Fed wants to overshoot 2% with the risk of the ongoing inflation expectation,” Roubini added.
The economist pointed out that policies “are becoming pro-labor, pro-workers, pro-unions." The massive federal stimulus is skewed heavily toward workers and that's adding to the problem of soaring prices.
“So we're going to end up with high inflation and a wage-price spiral over time," Roubini explained.
"The Fed cannot tighten because there is so much debt in the system, if they're going to try to tighten too soon, the system is going to crash. So they are in a debt trap. They're in a fiscal dominance," he added.
The economist is of the view that there will be a negative supply shock that will “hit the economy, reduce potential growth, increase the cost of production. And like in the '70s, with loose monetary and fiscal policy going to lead to stagflation, high inflation and also recession,” he added.
https://finance.yahoo.com/news/nouriel-roubini-on-economic-outlook-and-inflation-132954798.html
Although the Fed insists the effects are "transitory," Roubini — also known as "Dr. Doom" for his gloomy economic predictions — warned that the central bank won't be able to tighten monetary policy to slow down overheated economic growth.
“I’m on the side of those who believe that the rise in inflation is not going to be temporary, is going to be more persistent," Roubini told Yahoo Finance Live. "We have a massive monetary and fiscal stimulus, much bigger and more protracted than we had after the global financial crisis.”
The NYU economics professor pointed to a host of factors.
In addition, Corporate America has warned on earnings calls that input costs are rising, along with jumps in commodity prices, home prices, and food prices.
“Inflation expectations are rising, the dollar is weakening, and that implies imported inflation and higher dollar price of commodities. And the Fed wants to overshoot 2% with the risk of the ongoing inflation expectation,” Roubini added.
The economist pointed out that policies “are becoming pro-labor, pro-workers, pro-unions." The massive federal stimulus is skewed heavily toward workers and that's adding to the problem of soaring prices.
“So we're going to end up with high inflation and a wage-price spiral over time," Roubini explained.
"The Fed cannot tighten because there is so much debt in the system, if they're going to try to tighten too soon, the system is going to crash. So they are in a debt trap. They're in a fiscal dominance," he added.
The economist is of the view that there will be a negative supply shock that will “hit the economy, reduce potential growth, increase the cost of production. And like in the '70s, with loose monetary and fiscal policy going to lead to stagflation, high inflation and also recession,” he added.
https://finance.yahoo.com/news/nouriel-roubini-on-economic-outlook-and-inflation-132954798.html
Called Laws of Supply and Demand, most learned them in high school, apparently you were out attending a Hitler youth meeting at the time
I didn't think you'd cite anything except your opinion, and I was right.
I didn't think you'd cite anything except your opinion, and I was right.
Well for the basics you should have learned in high school; https://www.thebalance.com/causes-of-inflation-3-real-reasons-for-rising-prices-3306094 - https://www.investopedia.com/ask/answers/111314/what-causes-inflation-and-does-anyone-gain-it.asp)
And for sources you seemingly have to have to apply those basics;
https://www.forbes.com/advisor/investing/why-is-inflation-rising-right-now/
https://www.washingtonpost.com/business/2021/06/10/inflation-what-to-know/
https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html
https://www.nytimes.com/2021/05/13/upshot/inflation-is-here-what-now.html
https://nymag.com/intelligencer/article/inflation-coming-2021-rising-prices.html
https://theconversation.com/inflati...ng-in-2021-but-what-happens-after-that-161461
Well for the basics you should have learned in high school; And for sources you seemingly have to have to apply those basics; https://www.forbes.com/advisor/investing/why-is-inflation-rising-right-now/
https://www.washingtonpost.com/business/2021/06/10/inflation-what-to-know/ https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html https://www.nytimes.com/2021/05/13/upshot/inflation-is-here-what-now.html https://nymag.com/intelligencer/article/inflation-coming-2021-rising-prices.html https://theconversation.com/inflati...ng-in-2021-but-what-happens-after-that-161461
More opinions.
Are you appealing to authority?
More opinions.
Are you appealing to authority?
Wait a minute, you are actually criticizing "opinions" after the only "rebutal" you offered to the basic economics reality I showed you was some article citing some "economic professor?" Typical
First two were not opinions, simple explanations on how inflation plays into Supply and Demand, same content you apparently skipped out on in high school to run home to listen to Rush Limbaugh
Poor "copy and paste," pretty evident he is clueless when it comes to understanding economics and how the real world works, and he apparently, is never going to get it
Wait a minute, you are actually criticizing "opinions" after the only "rebutal" you offered to the basic economics reality I showed you was some article citing some "economic professor?"
You didn't show any "basic economics reality". You showed opinions.
You didn't show any "basic economics reality". You showed opinions.
Poor "copy and paste," he can't even defect off of his exhibited ignorance of economics, too funny
.Poor "copy and paste," he can't even defect off of his exhibited ignorance of economics, too funny
Are you for real, anyone can ping pong supposed "expert's" views forever, ain't that hard to find one that will support your point of view, especially when they don't have any skin in the game"