Economics @ ITT

Surprise! Inflation is too low almost everywhere on earth

Posted in economics, macroeconomics, Policy Issues by ittecon on May 18, 2013

The leading economies of the industrialized nations may not have a lot in common, but they are all afflicted by this: Inflation is too low.

via Surprise! Inflation is too low almost everywhere on earth.

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Lessons from Japan’s Economic Malaise

Posted in economics by ittecon on March 11, 2013

Japans economy has been in a state of malaise—slow growth alternating with recession–for over a decade, with intense debate meeting policy vacillation. Some, for instance, prescribe budget deficits to stimulate the economy; others, remembering the Clinton Administrations claim that fiscal consolidation underpinned the US recovery in 1993, argue for deficit reduction. Similarly, some argue that the country needs a mild dose of inflation, while Japans central bank continues to resist the very idea that inflation could ameliorate any economic problem.

via Lessons from Japans Economic Malaise by Joseph E. Stiglitz – Project Syndicate.

3 percent pay raise the ‘new normal’ for 2013

Posted in economics, macroeconomics by ittecon on November 16, 2012

Many U.S. workers can expect to bring home 3 percent more in 2013 than they did this year, according to forecasts from national compensation surveys .

So, at the current nominal inflation (CPI) rate of 2 to 2.2 per cent, this yields around 1 per cent in purchasing power.

via Business on NBCNews.com.

It’ll Get Worse For Average Americans

Posted in economics by ittecon on July 19, 2012

Comparing the economy to a drug addict, Peter Schiff, noted economist and CEO of Euro Pacific Capital, said in a recent interview that all of the money the government is printing to boost the economy is “like you are trying to keep a drug addict high. And every time the drug wears off, if you want him to stay high, you have to give him more. But he’s not going to get healthy if you keep him on drugs.”

via Economist: It’ll Get Worse For Average Americans.