Another Way to Think about Inflation

A Walmart employee stocks shelves in a newly opened Walmart Neighborhood Market in Chicago in 2011. (Jim Young/Reuters)
A genuinely conservative economic policy would address risk in the only reliable way we know how: by exercising thrift, prudence, and restraint.

NRPLUS MEMBER ARTICLE T he times are frothy. The markets are frothy. Politics is frothy. If there’s anything we have in abundance, it is froth: The price of that isn’t going up.

Other prices, though . . .

Inflation really means an artificial increase in the money supply beyond what is demanded by economic growth, though we mostly use it to mean a general rise in consumer prices. And it is sometimes useful to keep that distinction in mind: For example, there is some reason to think that years of efforts at economic stimulus have, by flooding the U.S. economy with cheap money, contributed to skyrocketing prices for

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