Communications of the ACM
ACM Opinion
Inflation Is Dead – And Technology Killed It!
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The most recent release by the U.S. Bureau of Economic Analysis, which estimates the changes in the prices of goods and services purchased by consumers in the United States, the price of living went up a mere 1.4 percent on a year-over-year basis, and 0.1 percent sequentially. That said, the yield on the 10-year Treasury bond is currently 2.06 percent, which is the global debt market's way of saying "Inflation? What Inflation?"
So, if the conditions are conducive for inflation, and arguably have been for many years, why is inflation so low?
Blame technology. What if the true lasting effect of technology is to deflate pricing power and kill inflation?
From FreightWaves
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