More for Milton Friedman
Wonks Anonymous has started keeping a file of inflation stories for his own edification and the instruction of his readers. Two from today's NY Times:
Oil just went over $100 a barrel. There are several paragraphs of explanation but Wonks Anonymous is fairly sure that the underlying cause is too much money chasing too little oil.
Meanwhile inflation in China has gone over 7%. Wonks Anonymous would like to note that this is the official inflation figure from a regime that is not noted for its transparency. Wonks Anonymous would also remind the reader that this is happening despite official and unofficial price controls.
It seems difficult to believe, but Mr Greenspan and Mr Bush may have brought us eight years of stagnant real wages followed by accelerating inflation. I stand in awe.
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