Finance & Fury Podcast

Welcome to Finance and Fury, the Furious Friday edition! I’ve been thinking a lot about what we are taught in economics, the basic ‘101’. Specifically, if you print a lot of money you get hyper-inflation. There are plenty of stories to back this up Germany Weimar republic, and Venezuela right now – there are plenty of countries with hyperinflation Central banks around the world (and at home) are trying for more inflation, and have increased their money supply over time. But we’re ending up with lowering inflation. This is puzzling on the surface, though it has a pretty simple answer. Inflation and CPI – What we’re told they are - quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Rise in the level of prices – why a $1 today is worth more than $1 in 1 year, let alone 100 years CPI is what is used to measure the basket of goods RBA monetary policy – Try to keep between 2-3% inflation through influence on