1970s Inflation Then, But Not Now Because... [Ep. 136c]

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4 years ago

-----EP. 136c SUMMARY-----
A review of transcripts and recordings from the 1970s reveals that monetary and political authorities were unable to identify the source of inflation (international liquidity creation). The authorities didn't understand money in the 1970s, and they still don't.

---------SPONSOR----------
Macropiece Theater with Alistair Cooke (i.e. Emil Kalinowski) reading the latest essays, blog posts, speeches and excerpts from economics, geopolitics and more. Interesting people write interesting things, why not listen and hear what they have to say? You could do worse things with your time (i.e. Bloomberg, CNBC, et cetera). Recent readings include thoughts from George Friedman, Lyn Alden, Daniel Oliver, Michael Pettis, the Bank for International Settlements and yes, even Karl Marx.

-----SEE EPISODE 136------
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL

-----HEAR EPISODE 136----
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----EP. 136c TOPICS-------
00:00 INTRO: A review of what 1970s US leaders thought was causing inflation that decade.
00:55 The 1970 recession in the USA did not slow (much at all) the rate of inflation, why not?
01:44 The Great Inflation actually lasted from 1965 to 1982 (during Great monetary expansion).
03:22 The Nixon Shock wasn't so much about gold as wage and price controls to stop inflation.
05:31 In 1972 Arthur Burns raised the idea that too much money (M2?) may be causing inflation.
09:26 In 1974 John Sheehan believed the inflation was not caused by monetary POLICY - correct!
11:25 In 1976 Lyle Gramley believed M1 should be expanding at DOUBLE the actual rate - why not?
14:07 The Fed didn't understand money in the 1970s and doesn't today.
17:37 OUTRO: Price increases yes, but without money it will prove to be transitory.

----EP. 136c REFERENCES---
The Power of Money Lurks In the Shadows: https://bit.ly/30EPSFP
Alhambra Investments Blog: https://bit.ly/2VIC2wWlin
RealClear Markets Essays: https://bit.ly/38tL5a7

-----------WHO-------------
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by David Parkins . Podcast intro/outro is "Aurora Borealis" by Chill Cole found at Epidemic Sound.

---------WHERE-------------
Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Art: https://davidparkins.com/

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