Economists' Belief in Growth-Inflation Link is Misguided, Productivity Gains Actually Lower Prices
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Economists wrongly believe growth causes inflation, but there is no link between the two.
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Inflation is a currency phenomenon unrelated to economic growth, which brings falling prices through productivity gains.
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The Fed's models wrongly treat economies like machines governed by speedometers, when they are comprised of innovative companies like Apple.
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Technology advances like AI automation will boost productivity immensely, making typical growth rates seem pedestrian.
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The Fed should acknowledge there never was a link between growth and inflation.