Brian Domitrovic on the Current Inflation
Economist and author Brian Domitrovic analyzes and explains the second wave of inflation by comparing it to the first run (the “Great Inflation“) from the mid-1960s through 1982. The dollar decoupled from the gold standard during the first inflation run. The inflationary spike that followed resulted in consumers finding the dollar’s actual worth through price discovery. In the 80s, Reagan-era tax cuts took the pressure off the economy and enhanced the demand for the collar. As a result, price discovery abated. The current run of inflation results from the dollar not returning to the gold standard. Domitrovic explains more in his interview with Kim during the first hour. Be sure to read his latest Forbes article on the subject, Inflation, Omen Of Creative Destruction.