According to the credentialed in its employ, economic growth causes inflation. Except that the Fed’s view of inflation is 100% backwards. Fed economists would be wise to visit Iran and Venezuela to understand that inflation has nothing to do with prosperity. The Fed’s incorrect inflation definition is rooted in a triple falsehood born of the easily disprovable view inside the bank that consumption drives economic growth. Fed economists think abundant consumption causes inflation, but then we can once again only consume insofar as we produce first.

Source: Forbes May 20, 2018 12:56 UTC