Goods Deflation Is Good

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Why are the major central banks so paranoid about deflation? It’s probably because they are staffed (stuffed) with macroeconomists who associate deflation with depression. In their opinion, falling prices make it harder for debtors to service their debts. Widespread defaults on those debts could cause a financial crisis and a severe economic downturn. I believe their thinking is that simplistic. … Read More

US Consumers: Shopping from Home

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More and more consumers are shopping online rather than going to the malls. Amazon has been a big enabler of this (non)movement. The company now offers its “Prime” customers Amazon Dash Buttons . So for example, place the Tide laundry detergent button next to your washing machine. When you are running out, press the button to order a fresh supply. … Read More

AI’s Future Is Here

Summers’ Epiphany. A 6/7 NYT article titled “Jobs Threatened by Machines: A Once ‘Stupid’ Concern Gains Respect” recalled a keynote address given by Larry Summers at the Peterson Institute for International Economics last November. The renowned Harvard professor of economics reminisced about his days as an undergraduate in the 1970s. Back then, the idea that technological progress could possibly reduce … Read More