Price Inflation in the 19 Seventy

In a tight labor market, when wages are rising there is greater pressure to borrow. The federal reserve under rights that by expanding the money supply in accordance with it to make it possible to happen. I think that's what happened in the seventies. That's why we might be looking at that dynamic going forward. When you spoke on your show in december about the price spiral, i wanted to say absolutely right, except up to a point where they were absolutely wrong. In a run-of-the-mill regime of central bank printing more and more money every year, this kind of thing doesn't really work. It just makes things worse for people who don't have as much cash