Average inflation US (CPI) by year (Source)
- 2008 ... 3.85%
- 2009 .. -0.34%
- 2010 ... 1.64%
- 2011 ... 3.16%
- 2012 ... 2.07%
- 2013 ... 1.47%
- 2014 ... 1.62%
- 2015 ... 0.12%
- 2016 ... 1.26%
With interest rates being at historic lows for some time now, money has been very cheap. Businesses can borrow money at near zero rates, consumers have lower mortgages and CC rates which should mean more disposable income and spending. The Fed also printed tons of money to stimulate the economy during the recession with quantitative easing (QE) which means an even higher money supply.
All of this suggests that inflation should be higher than what has occurred. Why has inflation been low these past ~10 years? Is it because wages have stagnated? Oil being extremely cheap?
Submitted August 30, 2017 at 04:21PM by pangolin44 http://ift.tt/2vKInZ7
