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George Selgin and Kyle Harrington On Deflation and the US Economy
from BoomBustRT
In today’s headline story, Erin Ade reports on the deflation of expectations surrounding the Sochi Winter Olympics coverage by NBC. It seems NBC thinks its viewers are so locked in – even in the Internet age – that NBC can re-broadcast the opening ceremony 10 hours late, with commercial breaks.. and not have a backlash. But there has been one.
Then, 2013 was a stellar year for US equities with near 30% gains. Economic growth in the second half of the year was well ahead of expectations. Underneath this rosy picture is an economy lacking in wage growth and job creation. Financial markets pundit Kyle Harrington talks to Erin about the US economy as well as wage deflation and the advent of wage arbitrage and robots in our global marketplace.
Later, monetary and banking economist George Selgin discusses price and debt deflation. In 2002, Ben Bernanke was worried about deflation. At that time, he gave his most famous speech to date on how to prevent Japanese-style deflation from hitting the US. Bernanke’s views helped convince the Fed to keep the Fed Funds Rate at a record low 1% before an overheated housing market forced them higher. Fast forward to today, and we have a new Fed chair, Janet Yellen, facing even similar challenges. Is our understanding of how deflation works accurate?
Wrapping up our deflation them, in today’s “Big Deal”, Erin and Boom Bust producer Edward Harrison discuss recent events surrounding Bitcoin – from a clampdown in Russia to a serious payments problem at Mt. Gox , one of the best-known exchanges. These events have seen the cryptocurrency fall precipitously in value.
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Source: http://financialsurvivalnetwork.com/2014/02/george-selgin-and-kyle-harrington-on-deflation-and-the-us-economy/?utm_source=rss&utm_medium=rss&utm_campaign=george-selgin-and-kyle-harrington-on-deflation-and-the-us-economy
