by 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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WARREN MOSLER considers the following as important: Economic Releases
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WARREN MOSLER writes Consumer sentiment, real retail sales, industrial production, wages
WARREN MOSLER writes New manufacturers orders, vehicle sales, unemployment claims, rents, oil prices
WARREN MOSLER writes Saudi price hike, private payrolls, new hires, corporate profits
WARREN MOSLER writes Pending home sales, Durable goods orders, oil rigs and production
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:
