Families will continue to feel poorer even as the inflation crisis that sent global prices surging comes to an end, the head of the International Monetary Fund (IMF) has warned.
Kristalina Georgieva, managing director of the IMF, said the “global inflation wave is in retreat” after central banks raised interest rates to combat surging prices.
Prices are going up more slowly, more slowly than wages, but prices aren’t going to go down again. Thus the drop in real living standards is permanent.
And thus is Modern Monetary Theory disproven. Money printer go brrr is not a good solution….
The long march through the institutions have left much of the populace thinking that a reduction in inflation means prices coming down. Abetted by politicians with no incentive to point out the error.
“the populace thinking that a reduction in inflation means prices coming down”
I think the explanation of that is simple and I don’t think it’s a political plot. Journalists write slack English. Rather than say “the rate of inflation is coming down” they say “inflation is coming down.” Then dimwits misunderstand that.
@ dearieme
Problem is that inflation is (from dictionary.com) defined as:
a persistent, substantial rise in the general level of prices.
It’s always an increase. The correct word for the opposite is deflation.
I still propose this is (state sponsored) stupidity on the part of the populace. Journo’s probably also were victims of the state education environment which is why they also don’t understand.
@Joe Smith – October 18, 2024 at 7:44 am
Abetted by politicians with no incentive to point out the error.
From the general level of intellect displayed by most of our politicians I’d suggest it’s more likely that they don’t know it’s incorrect either!
@ Baron Jackfield
Interesting question – has the lefist policy of dumbing down the population resulted in a greater number of stupid politicians.
Certainly there is a correlation between the rise of political correctness (Woke) and the number of memorable politicians (Thatcher being the canonical example PBUH).
From the Bank of England inflation calculator, from chosen year until now, round numbers:
1945 *32
1965 *16
1974 *8
1980 *4
1995*2
Even after insanity on energy policy, denying ourselves both cheap domestic and imported, we have just lived through the slowest debasement of the currency in our lifetime. A 29 year halving time. Quite remarkable,