@scooby. good stuff. nice posts. luv ur name btw. If you can please send the spreadsheet to moneyedkenya at gmail dot com. Ta very much.
I remember some of the quotes by the governor in 2008. Inflation was driven by what he called short term supply side shocks (domestically) and external shocks from abroad (oil bubble). But then in 2009 he says that inflation is no longer relevant to the interest rate structure. Then 2010 he says no demand driven inflation expected especially considering how liquid banks were. His statements can be confusing cos they don't follow some on those theories people learnt in uni. Like I mentioned b4 it'll be more interesting to look at what we're importing, if we'll tackle the issue of inflation.
But the governors actions are also confusing because on the one hand he wants private sector lending to grow, but expects no demand driven inflation, how can he predict that the credit banks lend wouldn't raise prices of major commodities. His crystal ball must be good or he's secretly their hoping banks won't lend to ordinary folk (by giving them 6% on an IFRB). On the other hand he's sucking up liquidity through debt auctions and wondering why money is not circulating to people on the ground. He wants to have his cake and eat it.
so @selah, i guess u have to look at the conditions on the ground, at your local supermarket, to see how every good u buy will be affected in real terms, because you'll be as confused as I am with all the talk of money supply and inflation fundamentals.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden