Thursday, August 25, 2011

Inflation

Remember how disruptive inflation was during the 1970s? Remember wage and price controls, and how they disrupted the economy? Take a look at this graph from the St Louis Federal Reserve Bank. Compare the 1970s to the last two years.

Do you have your life savings in your savings account? Have a pension which isn't indexed for inflation? Best brush up on your recipes for dandelion salad.

Thanks, Washington.

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2 Comments:

Anonymous Dan said...

This graph has a linear Y-axis and is highly misleading. Y is money, so you have to use a logarithmic scale.

Friday, August 26, 2011 at 8:17:00 AM HST  
Blogger TTB said...

You are welcome to take that up with the St Louis Federal Reserve Bank!

Friday, August 26, 2011 at 10:59:00 AM HST  

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