Fallacies About Current Inflation
journal contributionposted on 1995-10-01, 00:00 authored by Allan MeltzerAllan Meltzer
Two fallacies have received much attention this summer. One is that the U.S., or perhaps the world, is in imminent danger of deflation — defined as persistently falling prices. The other is that the decline in the prices of gold and a few selected commodities presage a decline in all prices — that the decline in gold and commodity prices is a leading indicator of future changes in all other prices and wages.