The winter of 2013/14 was brutal. Construction starts were delayed. Merchandise sat idly at ports. Consumers stayed indoors and local government budgets were hammered by snow removal costs. For roughly three months, forward economic momentum was stymied. According to the Bureau of Economic Analysis, the U.S. economy contracted at a 2.9 percent pace during the year’s initial quarter.
For a time, economists debated whether or not first quarter weakness was attributable to the weather or... [More]
The Difference between Inflation and Cost of Living
Inflation is defined as an increase or change in the general price level. Generally, inflation is viewed negatively since (all things being equal) an increase in prices reduces purchasing power. The cost of living can be understood as the general price level itself. In other words, a place that is terribly inexpensive to live in can be associated with high inflation, though if that high inflation persists, that place will not remain inexpensive... [More]