Ignoring the facts

Bumped into Cyril from the Free Market Foundation at Wits University yesterday. We had a brief discussion on Hayek and Keynes before our respective presentations began.

He started down the “hyperinflation here we come argument” when I asked whether he knew that US wages had declined last month. He asked “nominal?” with a genuine look of surprise on his face.

Becase last month (the prior release from the BLS) showed average wages declining by 0.1pc. Amazing how those that talk most about hyperinflation don’t know the facts.

Of course, today’s release of wage data shows a 0.4pc increase in average hourly wages. Not as dramatic a point as deflationary wages, but still as far from hyperinflation.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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