David Beckworth of the Mercatus Center is joined by Henry Curr, the economics editor for The Economist. They discuss the worryingly low inflation rate prevalent in a majority of the large economies and whether the Philips curve is dead – Curr thinks it still holds but is problematic. They also consider the link between inflation and technology. Curr does not think the rise of Amazon is particularly relevant; he believes there are productivity increases resulting from the provision of free services, search engines, and smart phones. Therefore, we miss some deflation in the figures because these products replace things for which people used to pay cash…
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