Long-Term Historical Inflation And Implications

My thought on the matter is that the overall topic of inflation and its effects is a complex one.  Adding to the complexity is the definition of inflation.  Most people define inflation in terms of CPI, but there are many different ways of defining the concept.  On this blog, to avoid confusion, I try to … Read more Long-Term Historical Inflation And Implications

“The Billion Prices Project” – Comments

I am finding “The Billion Prices Project” to be valuable. From the homepage, “The Billion Prices Project is an academic initiative that collects prices from hundreds of online retailers around the world on a daily basis to conduct economic research.” Two of the most prominent benefits I see from the data include that data is … Read more “The Billion Prices Project” – Comments

Rising Costs And Inflation

“And long before this recession hit — for a decade — middle-class families had already been expensing — experiencing a sense of declining economic security.  Their paychecks were flat-lining even though the cost of everything from groceries to college educations to health care were all going up.” President Obama, during an April 2, 2010 speech … Read more Rising Costs And Inflation

P/E Ratios and Inflation / Deflation

I recently came across an interesting chart titled “Relationship Of Inflation and Price/Earnings Ratios (1900-2008).”  It is from Crestmont Research and can be found at this link: http://www.crestmontresearch.com/pdfs/Stock%20Inflation%20&%20PE.pdf It shows the effect of inflation and deflation (as defined by the CPI) on the P/E Ratio. I think that it is worth looking at for a variety … Read more P/E Ratios and Inflation / Deflation