Inflation was near 14 point five % in the summer of 19 80, and unemployment was still over seven point five%. In august 19 79, the fed appointed a new chair by the name of paul volker. He created incredibly tight controls around the money supply. The fall out from that was that the us Entered a severe recession. And through commitment to a tyhpe money supply, the us. Managed to keep inflation in the single digits from that point forward.
#365: Nearly every financial news story for the past several months has centered around inflation – but what, exactly, is inflation? What are its causes? What are its effects? How is it measured? What notable inflationary events have unfolded throughout history, and what can we learn from these?
In this episode, we peel back the layers of the onion in order to deepen our understanding of the concept of inflation. We discuss hyperinflation, biflation, stagflation; we discuss the CPI, the PPI, and core inflation. We discuss the demand-pull inflation, cost-push inflation and the wage-price spiral. We resist the temptation to make predictions about the future, choosing instead to focus on refining our understanding of the present.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode365
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