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Monday, July 18, 2011

Monetary

News                                                                                                                             
WSJ | Consumer Prices Drop as Gasoline Costs Less
Type the sentence(s) summarizing the link here.U.S. inflation fell in June as gasoline prices retreated from early summer highs, but rising costs for a host of items including clothes and rent are keeping pressure on households and could complicate any efforts by policy makers to boost the economy.

Blogs                                                                                                                             
Daily Capitalist | Inflationistas vs. Deflationistas: What Does CPI and PPI Tell Us?
Inflationistas are probably confounded by Friday’s Consumer Price Index report that showed a decline of 0.2% in June. The report pins the decline, the first since June 2010, on falling energy costs. As a large component of CPI it:

Reports                                                                                                                         
AEI | The Limits of Monetary and Fiscal Policy
Monetary policy has reached its limits. The significant risk of deflation that prompted last year's second round of quantitative easing has passed, and with inflation rising, monetary stimulus is no longer an option.