The Problem is Not Deflation, It’s Attempts to Prevent It

by Mike ‘Mish’ Shedlock
The Street

Let’s investigate the Fed’s effort to prevent price deflation.

Here’s a Tweet that caught my eye.

“Problem with deflation is- Why buy anything if you know it will be cheaper in the future.,” responded one person.

Let’s investigate that question starting with a look at the CPI basket.

CPI Percentage Weights

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