‘Cost of money’ explains depressed US consumers – NBER research
Larry Summers and co-authors highlight “disconnect in inflation measurement”
A rise in the “cost of money” explains why US consumers are so unhappy, despite low unemployment and falling inflation, new research finds.
Former US Treasury secretary Larry Summers and co-authors Marijn Bolhuis, Judd Cramer and Karl Oskar Schulz say there is a “disconnect in inflation measurement”. The headline inflation indexes that central banks use typically do not include the cost of credit, despite this being a major reason for households facing rising bills.
In their working paper
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