A small amount of inflation seems to be good for the economy. Not this much, of course. I’m predicting that it levels off “real soon now” but I’m nothing but an informed observer, not an expert.
The inflation being seen now is the result of an economy jump starting after being almost crippled under the former guy. Even in the last months of his presidency, demand went up 30%. Greater demand = higher prices. The government can allow the prime rate to go higher, which will increase thge costs of borrowing for home loans, business needs, etc. I seem to remember even Nixon instituting wage and price controls in the ’70s but inflation was reaching 18% back then.
Concretionist over 2 years ago
A small amount of inflation seems to be good for the economy. Not this much, of course. I’m predicting that it levels off “real soon now” but I’m nothing but an informed observer, not an expert.
mourdac Premium Member over 2 years ago
The inflation being seen now is the result of an economy jump starting after being almost crippled under the former guy. Even in the last months of his presidency, demand went up 30%. Greater demand = higher prices. The government can allow the prime rate to go higher, which will increase thge costs of borrowing for home loans, business needs, etc. I seem to remember even Nixon instituting wage and price controls in the ’70s but inflation was reaching 18% back then.