The Dissenter

#1150 Mark Blyth - Inflation: A Guide for Users and Losers

Sep 15, 2025
Guest
Mark Blythe
In this insightful conversation, Mark Blyth, a renowned economist and author, explores the intricate world of inflation. He breaks down the complexities of the inflation index and how it impacts various socioeconomic groups. Blyth debunks common misconceptions about inflation while discussing the historical evolution of interest rates and their effects on inequality. The conversation also dives into the multifaceted causes of inflation and warns of potential hyperinflation, urging listeners to rethink their investment strategies in changing economic conditions.
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INSIGHT

What Inflation Actually Means

  • Inflation is a rise in the general level of all prices, not the price of one item.
  • People feel high prices as pain even when the measured inflation rate is falling.
INSIGHT

Limits Of Inflation Indexes

  • Inflation indexes track thousands of items month to month to estimate a single price-level number.
  • Complications like changing product quality and free digital services make constructing indexes imperfect.
ANECDOTE

Volcker's Brutal Reset

  • Paul Volcker raised US interest rates dramatically to break 1970s inflation expectations, causing a deep recession.
  • That painful reset convinced markets and anchored expectations for decades afterward.
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