All the Hacks with Chris Hutchins Inflation and All Things Money with Jacob Goldstein
Jul 6, 2022
Jacob Goldstein, a journalist and author known for his work on NPR's "Planet Money," joins to unpack inflation and its impacts on our finances. They discuss the origins of money and how societal agreements shape its value. Jacob shares insights on navigating interest rates and effective savings strategies, including I-Bonds. The conversation also explores the evolution of currency, the future of cash versus digital formats, and practical money hacks for smarter financial planning.
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Inflation Expectations
- Inflation expectations significantly influence actual inflation.
- Persistently low inflation can occur even in classically inflationary environments if people expect it to stay low.
High Inflation vs. Hyperinflation
- High inflation, like 8%, is bad because people hate it and real wages decline.
- This contrasts with hyperinflation, which is a symptom of economic collapse, not just high inflation.
Gas Prices and Inflation Salience
- Gas prices, though a small part of household budgets, disproportionately impact inflation awareness due to their visibility.
- Conversely, healthcare costs, a larger budget item, are less noticeable, especially with employer-sponsored insurance.
