Skip to main content

Goods Inflation, Asset Inflation, and the Greatest Peacetime Inflation in the U.S.

Brendan Brown

Introduction

Since the Federal Reserve opened its doors in 1914, we have had successive periods of great monetary turbulence (of course, there were financial booms and busts under the international gold standard in the previous 40 years but these largely stemmed from great flaws in the U.S. banking industry, in turn induced by perverse regulations for example (Rothbard 2005 and Selgin 2016). These periods of turbulence have all featured inflation, but the mix between goods and services inflation on the one hand and asset inflation on the other has been highly variable. The purpose here is to examine how in principle asset inflation and goods and services inflation relate to each other depending on the particular monetary disorder. The hypotheses developed are tested in one key episode from the laboratory of history, the greatest U.S. peacetime inflation from the mid-1960s to the start of the 1980s.

To read the full paper, click here.

Related Articles

Kraft Heinz Just Cut The Cheese: 3 Ways It Can Make A Comeback

Hank Cardello

A year ago March I wrote in Forbes that Kraft Heinz wasn’t cutting the mustard after focusing on cost cutting and having to take write-downs on its Kr...

Continue Reading

What DOJ’s Proposal to Curb Big Tech Legal Protections Means for Valuations

Robert M. McDowell

In an interview on CNBC’s Squawk Box, Rob McDowell discusses the DOJ’s proposal to curb Big Tech legal protections. ...

Watch Now

Negative Rates Are Currency Manipulation

Brendan Brown

In an interview with Caroline Hepker and Roger Hearing on Bloomberg Daybreak Europe, Brendan Brown discusses negative interest rates and currency mani...

Listen Now