Chasing The Elusive Target

For all the talk about how the "disinflation process has begun" (to quote Jerome Powell), there sure is a lot of ambiguity among consumers about the near-term path for prices. While it's true that longer-term expectations remain anchored both according to consumer surveys and various market-based measures, the sheer amount of confusion and disagreement about what's in store over the next 12 months is problematic. Why? Well, because when the public harbors widely divergent views about the likel

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One thought on “Chasing The Elusive Target”

What do you make of MMT’ers frequent assertion that higher rates being inflationary? I mean it sort of makes sense in that you’re just dumping money into bank accounts as interest, but the part where that money makes its way into consumer’s hands seems to be missing. Also, no real historical evidence of that being the case (outside of cause/effect arguments around the volcker period i guess).

Do you think their claims are possible, even if only barely? Or have they jumped the shark?