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Costs of Inflation: Price Confusion and Money Illusion

Marginal Revolution University 178 views

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So all we have to do is trust the BLS calculations; the govs calculations without any acknowledgment of hedonic adjustment? You realize the gov has every incentive to keep the headline inflation number low right? Dollar confidence, social security payments, and overall economic stability to name a few
Comment from : @jwb4bb

2:27 what's the logic behind shifting flower production to warmer climates?
Comment from : @muhammedsahal8406

Didn't we just established in the last video that inflation is about the money supply ? Thus shouldnt we be able to "know" the rate of inflation by "knowing" the increase in money supply ? we don't know how the "inflation" might affecte each price independently because of the noise but shouln't we be able to know the genral rate of inflation by knowing the rate of increase of the money supply ?
Comment from : @gllm100

You sir are an amazing teacher
Comment from : @minma02262

Thank you so much for suck great explanation to inflation! Who would've known 4 yrs later, in 2022, covid-19 would send a big inflation shock wave world wide!?
Comment from : @MrJakavana

Wages don't rise at the same rate--take a look at how much the minimum wage has changed
Comment from : @brittahasnofilter

I love your work!
Comment from : @LECityLECLEC

intinya cost of inflation itu apa pak?
Comment from : @geblakgaming8694

This channel is addictive I come here to study for my Econ class, but sometimes I just like to watch for my own entertainment Such good stuff!
Comment from : @maincharacterNRG

Thank you sir for the expansions nice suit by the way
Comment from : @rebwaromer9323

Oh yeah, how anyone can predict size of monetary inflation when there is central bank, which has all control of printing the money ))
Comment from : @Acid31337

I don't think it's a real illusion Many things are bought on credit and people budget based on how much they have to pay monthly (eg, car payment, mortgage payment, etc) Inflation squeezes nonfixed expenses only, but a pay cut not only squeezes nonfixed expenses but also makes your budget for these things not go as far Hence you have the "Angry Professor Syndrome" talked about in another video
Comment from : @ThePeterDislikeShow

These Videos are complete Bullshit --- really some are out right lies The PRICE of OIL and increase not just because it is scarce - for example it increased in 1970's because OPEC controlled monopoly pricing and colluded it to set the price at what they wanted This guy is a loser
Comment from : @19battlehill

Your face seems like the murdered journalist Jamal Khashoggi
Comment from : @Alfa1M

Venezuela is a Really case of study Inflation is 10000000000000 in 4 years
Comment from : @luzo23

How'd we figure real prices though ?
Comment from : @AmelieZh

If money supply is constant, but yet rise in inflation say because of the depreciation or devaluation of the exchange rate, in that case prices will rise creating a higher demand for money Probably the output has to come in picture because higher output will generate higher amount of money so it money may not be the only factor responsible for inflation
Comment from : @ismikawan

Inflation is NOT the increase in asset prices! That is the RESULT brInflation is the increase in currency supply And we’ve NEVER seen such global explosion in currency supplybrInflation is NOT good Stable currency, tied to real money aka PMs, is FAR better than central bank fiat currency
Comment from : @dcroley

I love how Volker aggressively wanted to "hammer inflation to zero" It worked, but the medicine tasted so bitter
Comment from : @CClausen85

Excellent series
Comment from : @ozzlefozzle

I m from #india ur courses help me a lot I m economics student
Comment from : @moumitakar6496

When was the last time wages adjusted for inflation by doubling? Go ahead and tell people working a minimum wage job demanding "Fight for $15" that inflation is consistently only 25 If you are so sure of your models how about a forecast from all the information we have from 2000-2016? Why is inflation only 25 with a National Debt of 22 Trillions dollars? No velocity? The Federal Reserve buying assists?
Comment from : @easyeagle3730

you r the best sir :)
Comment from : @abhilashkhajuria

tks r sp '--@₩p
Comment from : @ivanaspahija200

I can't stand when people teach hogwash WAGES ARE STICKY especially in rural areas and they are usually the last thing to rise especially over the past 30 years INFLATION makes us all go broke and sends the money to the top
Comment from : @midnightman011

Why just not take the inflation out of the economy, it does no good for anyone?
Comment from : @theLAman-i9s

I'd like to add a point (or even a correction): not always all prices rise up altogether; more specifically, not always salary rises in the same rate as products This has been happening here in Brazil: while most salaries have been increased in accordance with a formal inflation index, many products consumed by all people, such as meat and apartments/houses, have increased far more than the average computed by the index And the there is the variance related to each economic level of the society: poor people don't have a car here, so the inflation related to oil is irrelevant for them compared to bread In that case, a smaller inflation in oil but bigger inflation in bread may lead to the average value computed by the index and used to raise that poor guy's minimum wage, but he actually suffered in the processbrbrAt the end, the common Brazilian has actually lost market power since the introduction of the Real
Comment from : @momergil