The Language of Inflation | Outside the Box Investment Newsletter | Mauldin Economics

Dylan sets us straight in his opening paragraph:

“Regular readers of our irregular publication will be aware of our thoughts on inflation, but for those who are not we would summarize them thus: inflation is not measurable. We can summarize our views on money with similar succinctness: it is poorly understood. And as for the economy, we know only this: it is a complex system. From these observations can be derived a straightforward corollary on economic policy makers: trying to control a variable you can’t measure inflation with a tool you don’t fully understand money in a complex system with hidden, unobservable and non-linear interrelationships the economy is a guaranteed way to ensure that most things which happen weren’t supposed to happen.”

And in his closing paragraph he sums things up more succinctly and pithily than I ever could:

“Today’s language of inflation embeds so many of these false ideas that the full rottenness of what passes for financial thinking today is obscured.”

via The Language of Inflation | Outside the Box Investment Newsletter | Mauldin Economics.

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