Ice,
I had a gazillion economics courses, but they've been so long ago. What I am kind of hoping will happen is that we will bop along with no inflation and no deflation (you know, more or less). If we can grow the economy in this way, would be the best of both worlds, right?
One other thing I've heard lately, but I don't have it in writing is that the fastest growing sectors of the economy (technology) continue to experience price deflation. The items mentioned were cellular telephone rates and computer prices. This rings true from what I see. But this has ALWAYS been the case. Anytime a new technology item (like, for example, the camcorders) first comes out, they are high priced (maybe $2000 - $2500) and then they become very reasonable (like $600 - $900.) Seems that this happens as they move the item into mass production, volume goes up, costs go down, the same old song......
Maybe it would be interesting to see the items included in the PPI. Honestly, for the last couple of years, I've been keeping track of certain technology stocks, but not worrying too much about inflation/deflation, etc. I started to get interested when evidence of deflation started surfacing. This is a new one on me!
Teri |
