Nigeria has entered into deflation – but prices are still rising at 16%-per-year. Come again? The west African country, an important oil producer which has the largest economy on the continent, gives us a perfect example to show the difference between deflation as traditionally thought of and deflation as it actually is. You see, deflation […]

Read More

One hundred years ago, as the First World War was raging in 1917, the US Congress approved the Second Liberty Loan Act, in which it modified the method of approving new government debt issuance. In order to provide more flexibility for the government after the country became involved in the war, Congress established an aggregate […]

Read More

The latest figures for consumer credit in the US showed a lower-than-expected increase of $12.4 billion in June. Non-revolving credit, which includes student and car loans, rose by $8.3 billion in June, after climbing by $11.1 billion in May. June’s number is the slowest pace of increase in non-revolving credit for a year. Revolving credit, […]

Read More

The belief that inflation relates to rising prices of goods and services, and that deflation relates to falling prices, is so widespread that even central bankers (who really should know better) have long ago resigned themselves to describing rising and falling prices in this way. Here’s an interesting thing: I wonder how many people think […]

Read More

Deflation is a contraction in the total supply of money and credit in an economy. Inflation is an expansion of the total supply of money and credit in an economy. In 2008, the Federal Reserve (Fed) decided to commence a policy of hyper-inflation by printing monetary tokens. The policy of hyper-inflation they call Quantitative Easing […]

Read More

In the UK, the M4 is a highway that joins London and Wales. It is also a measure of broad money supply. Our Quantity Theory of Money (hyperlink) article pointed out the relationship between money stock (or supply) and the prices of goods and services in an economy. The relationship can be patchy but, in […]

Read More