Economic stupidity and Fed groupthink remain ‘well-anchored’
“The idea behind inflation expectations is that if consumers think prices will go down, they will hold off purchases and the economy will collapse. The corollary is that is consumers think inflation will rise, they will rush out and buy things causing the economy to overheat. Let’s test the theory out with a set of practical questions regarding the CPI and spending habits.”
USAGOLD note: Common sense and down-home humor from Mish Shedlock. . . .