Markets & Economy

World events put inflation fears to rest

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Since the Great Recession began in 2007, we've been barraged by a steady stream of commentary from every perspective arguing about what is happening to us, and debating risks and remedies, in a situation that's without precedent. Perhaps the dominant thread has been from those insisting that inflation will be the inevitable consequence of central banks' efforts to save the global economy from implosion. The "inflationistas" have also hijacked the language, describing central banks working to prevent collapse of stocks and housing and bank portfolios as creating "asset inflation." Joining the inflationistas, as always, are the gold bugs. By this week's end, the sky was black with buzzards circling the remains of these arguments and their progenitors -- not just here in the U.S., but everywhere. In the U.S., too much attention is paid to the consumer price index (CPI). The Fed watches dozens of price indicators, led by personal consumption expenditures (PCE). PCE peaked in 20...