Low Inflation Haunts the Fed: Here's China's Great Leap to Wallet-Free 2 days ago   05:36

Wall Street Journal
Inflation is among the most powerful forces in financial markets. It dictates the supply of money in the economy, and changes interest rates, which are the cost of borrowing money. Here's how it works, and how the Fed works to regulate it.

Photo composite: Dom Amatore for The Wall Street Journal

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Comments 1079 Comments

Tanner Thomas
2% is too low? The true inflation is more around 6-7% if you actually study money supply and base the real definition of inflation. At 2% a year that destroys 90% of purchasing power in the average lifetime and now we have people at the WSJ talking about how a 2% y2y is low. This is non-sense.
Cheryl Garnica
This is such old news:/
Albert Correia
Increased demand? Explain why a 2 cent ticket becomes 9 dollars? The only increase was greed, in movies the lead would make a hundred or so dollars and now they not only make bank but they also want part of the franchise. How's that for inflation.
Yusri Tzm777
I wsj no1 top Asia
Jean-Bernard Joly
Countries with VAT can control inflation by increasing sales tax, every 1% increase in nominal tax rate decreases 4% in inflation consumer inflation that is since businesses aren't affected by VAT Increases
Americans do not have VAT They would never understand this concept 😜 they are not smart 😂 they hate taxes But they don't mind giving their money to banks.. as I said ... so not smart at all... look who's leading the hurdle 🙄
Moses
The feds control the economy by keeping us the majority down. U can only have wealth by having a bigger pool of poor people.
Socrates Inglessis
Capitalism's fatal flaw is it is based on growth, and growth is an exponential curve. It is a mathematical impossibility to stay on the ever faster and ever higher angle found in all exponential curves. Anyone who sets off to walk an exponential path is doomed to fail. Hence the boom bust cycle that now resets the impossible math. We need to invent a new economic system which accounts for waste and zero growth. (and No, Socialism and Communism are not the opposite of capitalism. They are political systems the other is an economic one.)
Hello everybody
Inflation is caused by an increase in the supply of money. Didn’t everyone learn that?
Lance Arthur Torres
when u get a 2 - 4.5% increase a year at work but it's just inflation
Snehal Anandkumar
Andrew Yang!
calin onofrei
It's a Ponzi scheme
Buddy hirshfield
I feel the Fed wants to have a recession
Rolando Gonzalez
Where is this 9$ theatre?
Matthew Wrigley
Inflation is significantly higher then "official" metrics suggest. The only category of prices that have not risen are wages. REAL inflation has been running at closer to 9% a year since 2009. Hence why stocks, real estate, and bitcoin have skyrocketed inversely correlated with the health of the real productive economy.


For the record, inflation is ALWAYS and AT ALL TIMES a monetary phenomena. The nonsense about prices rising due to supply or demand is not "inflation" Prices rising due to a diluted currency is.


Welcome to the Financial Dystopia of the Dictatorship of the Private Central Banks.


Be happy citizens, our daily chocolate ration has increased from 200 grams per day, up to 1000 grams per week.
Chris Choir
Inflation wouldn't be so low if the Fed used the right metrics
Yamaha NTX700
Only the WSJ can quote Milton Friedman and completely ignore his point.
Inflation = printing press
Amount of cash * velocity of money = prices
Not meeting some price increase target usually traces back to velocity.
A N D R E Y
Stay out of debt. Pay off the credit cards ASAP as well.
Robert Alexandre
Thank you.
mark harrowfield
Come on the great corporate socialist leader D Trump has giving you tax cuts your inflation is coming with tariffs fear not
The World Through My Mind
This video needs a follow up video on the Fed's Hedonic Deflator that is used to manipulate the inflation number to their liking.
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China's Great Leap to Wallet-Free Low Inflation Haunts the Fed: Here's 2 days ago   10:36

No cash? No problem. A trip to Shenzhen, China highlights how the explosive growth of mobile payments is driving a wallet-free society. WSJ's Jason Bellini reports.
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