It wouldn't be too much of a stretch to suggest that headline writers and financial media outlets were pleased to see German inflation accelerate in September. After all, headlines about spiraling price pressures in Germany make for great click fodder -- "Weimar," and such. For folks outside the polite world of mainstream financial coverage, it's an excuse to use those old photos of paper money in wheelbarrows. Happy day! Anyway, I digress. Inflation rose 4.1% in September, the Federal Statis
2 thoughts on “Wheelbarrow Jokes”
It is hard to argue with Lacy Hunt. He has been on this DebtGDP vs lower real yields arguement for 30-years and has proved more right than wrong. However, if looking for it is different this time, there is a new development that just could prove him wrong. If labour share of GDI bottoms out and goes higher, this correlates well with R-star and by extension real Treasury yields.
For sure your “residual” arguments in support of inflation strike me as dead on. While #3 still owes some apologies to Malthus, at some point he will (have) be(en) right. Argument #2 is as yet a stealth problem which will really start striking us in earnest in five years or so.