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Disinflation Dream Come True | AIER

Great news on the inflation front: According to the Bureau of Economic Analysis, price pressures have significantly eased. The Personal Consumption Expenditures Price Index (PCEPI) rose 3.0 percent year-over-year in October, down from 3.4 percent the month before. Continuously compounded, headline inflation was a mere 0.59 percent last month. Core inflation, which excludes volatile food

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Timiraos on Supply-Side Disinflation | AIER

The economy desk at the Wall Street Journal is promoting supply-side disinflation. Some of their articles are quite bad. Others are more promising. Nick Timiraos, the Journal’s chief economics correspondent, recently offered a nuanced perspective. Timiraos outlines the standard productivity-driven view of easing price pressures:  The U.S. economy’s speed limit, known as potential growth, appears

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Disinflation takes grip in major economies

This article is an onsite version of our Disrupted Times newsletter. Sign up here to get the newsletter sent straight to your inbox three times a week Today’s top stories For up-to-the-minute news updates, visit our live blog Good evening. It was confirmed today that inflation in the Eurozone fell sharply last month, adding to evidence

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The Fed Delivered Disinflation | AIER

In the Wall Street Journal, James Mackintosh argues the Fed doesn’t deserve credit for the recent decline in inflation. Disinflation occurred “mostly because of things the Fed has no control over, as normality returned after the pandemic,” he writes. Instead, supply-side improvements explain easing price pressures. The best that can be said for the Fed,

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Alan Blinder: Let Them Eat Disinflation

Alan Blinder thinks American households and workers have never had it so good. But because they’re trusting their lying eyes instead of experts like him, they’re disgruntled about the economy. Why don’t the hoi polloi appreciate that “unemployment is near record lows, net jobs are still being created at a breakneck pace, and inflation has

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Disinflation Dreams and Keynesian Confusion

The Federal Reserve’s monetary tightening appears to be bringing down inflation without imposing undue burdens on the real economy. The Consumer Price Index (CPI) grew at an annualized rate of 2.0 percent in July. Core CPI, which excludes food and energy prices, grew at an annualized rate of 1.91 percent. This is good news: High

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