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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.

2 comments:

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

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

    ReplyDelete