tag:blogger.com,1999:blog-316774933262163695.post3035060588839661812..comments2023-10-11T08:31:50.397-04:00Comments on moneythoughts: The Dollar, Inflation & The Capital Marketsmoneythoughtshttp://www.blogger.com/profile/08462893426608294171noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-316774933262163695.post-4428576773486580282010-05-12T20:12:44.509-04:002010-05-12T20:12:44.509-04:00Seems like our official measure of the inflation r...Seems like our official measure of the inflation rate has been inaccurate over the past two decades or so. This may be one factor leading to central banks of the world, like the Federal Reserve, setting extremely low interest rates. <br /><br />It looks like inflation is low because so many products and services remain cheap thanks to cheap imports and technology. For instance, computer technology can bring a lot of prices down. <br /><br />When these figures get aggregated into the inflation rate, they make it look low. At the same time, certain necessities have been inflating at a brisk pace over the past 20 years. Housing costs and health care come to mind. <br /><br />Low interest rates have inflated the housing costs over the past 20 years, but Federal Reserve and other central banks didn't put on the breaks, even though this inflation was happening, because they thought inflation was low.Theslowlane Robert Ashworthhttps://www.blogger.com/profile/10082164332880198884noreply@blogger.comtag:blogger.com,1999:blog-316774933262163695.post-3129656184318748232010-05-12T15:04:36.413-04:002010-05-12T15:04:36.413-04:00Winslow, how about taking that idea one step furth...Winslow, how about taking that idea one step further. How about indexing savings in bank savings accounts to the rate of inflation plus 3% interest on your money. Then placing a small tax when you withdraw the money to use it, or something like that. That would encourage people to save in a traditional savings account and people would not have to invest in money market funds to realize a decent total return.moneythoughtshttps://www.blogger.com/profile/08462893426608294171noreply@blogger.comtag:blogger.com,1999:blog-316774933262163695.post-80831215965403067452010-05-12T14:44:35.666-04:002010-05-12T14:44:35.666-04:00Perhaps the government should not tax "saving...Perhaps the government should not tax "savings" to encourage individuals to save more.winslowhttps://www.blogger.com/profile/13031974674813319353noreply@blogger.com