Monetary Policy Is the Root Cause of the Millennials’ Struggle

Re:Monetary Policy Is the Root Cause of the Millennials’ Str... by joshuafkon on Thursday September 05, 2019 @07:17AM (#20885586)

Short version of the argument:

The constant low (but steady) inflation that we now see as normal under the 2% inflation targeting in a major contributor to the significant rise in prices for interest-rate sensitive assets. (Interesting tangent: John Taylor on why he selected 2% as a target: https://economicsone.com/2018/01/09/the-feds-inflation-targe... )

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Re:Monetary Policy Is the Root Cause of the Millennials’ Str... by rdtwo on Thursday September 05, 2019 @11:53AM (#20887937)

Except inflation is actually significantly higher the basket is just poorly assembled and exclude major drivers like food gas real rent and most importantly medical costs

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Re:Monetary Policy Is the Root Cause of the Millennials’ Str... by toomuchtodo on Thursday September 05, 2019 @01:31PM (#20888980)

I am curious what inflation would be with universal healthcare, a healthy amount of affordable housing, primarily renewables for energy, and EVs negating the need for gas/oil. It feels like central banks are going to lose against technology deflation, but I'm not an economist so I can't say for sure.

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Re:Monetary Policy Is the Root Cause of the Millennials’ Str... by blevo on Thursday September 05, 2019 @04:14PM (#20890277)

I suppose it depends on how those programs are funded/achieved. If they are funded via something that acts as monetary stimulus (just print the money to pay for it) then I imagine there would be a heavy burden of resulting inflation.

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Re:Monetary Policy Is the Root Cause of the Millennials’ Str... by MiroF on Friday September 06, 2019 @11:14AM (#20896361)

The inflation marker does what it is designed to do - if it didn't, markets would properly price in that information

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