Inflation

SaraSara

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AlexfromLA said:
For instance unemployment figures in the US overall are about 9% right now. But in some states it's as high ( or higher, I haven't looked at them too recently ) as 18%.

So even though the average inflation might be low nationwide, in some States inflation might be much higher or easily double the national figures.
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I dont understand your thinking. Why should inflation figures change as unemployment figures do? Please elaborate....
 

katti

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SaraSara said:
US inflation is running at under 2% this year. Actually, the real fear there is not of inflation but of deflation. Something like it happened in Japan more than twenty years ago.

There's an interesting article on today's NY Times: http://www.nytimes.com/2010/07/30/business/economy/30fed.html?_r=1&hp
I know that in Belgium we have had negative inflation for a while (in the beginning of the crisis, end 2008/beginning 2009). Prices went down instead of up!
It is a phenomenon that seems te be as bad as inflation: wages are linked to the index, and if the index is negative, then wages should go down too.
I know that for a while there was panic in 'economic circles'.
It seems that not economists don't have a lot of expierence with this...
 

SaraSara

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AlexfromLA said:
If you don't understand the basic analogy I posted I doubt you'll understand the explanation.
That's dodging the question. Perhaps you could post one of your very helpful pictures?
 

jp

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Think the point he was making was that there can be statistical fluctuations on a micro level that go against the national trend.
 

SaraSara

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jp said:
Think the point he was making was that there can be statistical fluctuations on a micro level that go against the national trend.
That's a clear, rational explanation - shows you know what you are talking about. Thanks.
 

AlexfromLA

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SaraSara said:
Thanks for a clear, rational explanation. Shows you know what you are talking about.
Shows he was bright enough to understand my simple and obvious analogy.

After all he was only explaining my post to you not underhandedly trying to insult me.
 
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