The Recessionary Price of a Faster Decline in Inflation
Notes on the Week Ahead
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The Economic Evil of High Inflation
Last June, CPI inflation vaulted to 8.9% a year over year, its highest level since December 1981. High inflation also spreads worry and misery as consumers have a harder time feeding their families or paying the monthly bills. The growth of average hourly earnings has now fallen below the increase in CPI inflation for 23 straight months. So long as inflation is coming down slowly and predictably, most of the macroeconomic ills for inflation become relatively minor.
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