Chapter
The Confusion Surrounding Inflation Explained
13:44 - 19:22 (05:37)
Despite average prices going up by 10%, not everything has risen by the same amount and people's salaries are not increasing at the same rate, resulting in confusion about inflation.
Clips
Economists John Maynard Keynes and Irving Fisher made a catastrophic failed forecast and missed the Wall Street Crash of 1929, wiping out 89% of the value of shares.
13:44 - 15:08 (01:24)
Summary
Economists John Maynard Keynes and Irving Fisher made a catastrophic failed forecast and missed the Wall Street Crash of 1929, wiping out 89% of the value of shares. Their different outcomes can be attributed to "skin in the game," with one economist being too invested to think clearly and the other able to brush it off and retain their reputation.
ChapterThe Confusion Surrounding Inflation Explained
Episode#548 - Tim Harford - Why Is Thinking Clearly So Difficult?
PodcastModern Wisdom
The podcast discusses the importance of taking responsibility and understanding inflation.
15:08 - 16:23 (01:14)
Summary
The podcast discusses the importance of taking responsibility and understanding inflation. The guest speaker believes that people need to be aware of their extreme behaviors and optimize themselves to be somewhere in the middle. Additionally, the speaker provides insights into what people keep getting wrong about inflation.
ChapterThe Confusion Surrounding Inflation Explained
Episode#548 - Tim Harford - Why Is Thinking Clearly So Difficult?
PodcastModern Wisdom
Even though prices have gone up by 10% on average, salaries haven't increased by the same amount, making it difficult to understand the real cost of goods in relation to earning power.
16:23 - 19:22 (02:59)
Summary
Even though prices have gone up by 10% on average, salaries haven't increased by the same amount, making it difficult to understand the real cost of goods in relation to earning power. Additionally, policies on inflation are currently contradictory.