inflation

3Apr

By THEIRL1ADMIN01No Comments

Two Economists Forecast What’s Ahead In 2023: A Possible Recession, Inflation, Unemployment, And The Housing Crisis

With the current U.S. inflation rate at 7.1%, interest rates rising and housing costs up, many Americans are wondering if a recession is looming. Two economists discussed that and more in a recent wide-ranging and exclusive interview for The Conversation. Brian Blank is a finance professor at Mississippi State University who specializes in the study of corporations and how they respond to economic downturns. Rodney Ramcharan is an economist at the University of Southern California who previously held posts with the Federal Reserve and the International Monetary Fund. Both were interviewed by Bryan Keogh, deputy managing editor and senior editor of economy and business for The Conversation. Below are some highlights from the discussion. Answers have been edited for brevity and clarity. B...

Why Inflation Will Likely Stay Sky-High Regardless Of Which Party Wins The Midterms

Soaring inflation is the top issue for a lot of voters heading into the midterms, with most saying Republicans would do a better job of handling the problem. Indeed, Republican candidates are taking full advantage of voter concern about inflation by hammering Democrats on the issue and pushing their own ideas to fight inflation, such as cutting both government spending and taxes. As a finance and economics expert, I have studied inflation, what causes it and what can bring it down. That’s why I doubt a Republican Congress would have much, if any, effect on inflation. Two drivers of inflation Inflation, or a sustained rise in consumer prices, is created in two main ways. The first is by way of an increase in demand for products and services. For example, at the beginning of the pandemi...

Poorest Americans Are Hit Hardest By Inflation Inequality And Soaring Prices On Necessities

The fastest rate of inflation in 40 years is hurting families across the U.S. who are seeing ever-higher prices for everything from meat and potatoes to housing and gasoline. But behind the headline number that’s been widely reported is something that often gets overlooked: Inflation affects different households in different ways – and sometimes hurts those with the least, the most. Inflation, as calculated by the Bureau of Labor Statistics, is designed to track the price increases in a typical U.S. household’s basket of goods. The problem is spending bundles differ across households. For example, a family in the lowest 20% of income typically spends around 15% of their budget on groceries – this is nearly 60% more than households in the top 20% of the income distribution, according to m...