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CPI, lumber

Summary:
A rise in prices from an external shock can result in a slowdown of consumption, but to date fiscal transfers have worked to sustain incomes that support consumption. Expiring federal unemployment comp will remove some of that support, and we have a backdrop of a Fed 0 rate policy which itself is a deflationary bias: Lumber price made the news a lot more when they were going up than when they started going down:

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CPI, lumber

A rise in prices from an external shock can result in a slowdown of consumption, but to date fiscal transfers have worked to sustain incomes that support consumption. Expiring federal unemployment comp will remove some of that support, and we have a backdrop of a Fed 0 rate policy which itself is a deflationary bias:

CPI, lumber

CPI, lumber

CPI, lumber

Lumber price made the news a lot more when they were going up than when they started going down:

CPI, lumber

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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