Economist Shepherdson Sees Dollar as Drag on Goods Prices

The video discusses the impact of a strong dollar on goods prices and core CPI, highlighting the role of services and wages. It reviews historical yield trends since Eisenhower, noting a long-term decline in real yields. Current economic pressures, including reckless fiscal policy and market fears of inflation and downturn risks, are analyzed. The video concludes with a future economic outlook, predicting potential wage growth and a strong economy despite short-term challenges.

How does a stronger dollar affect imported goods prices?

• It puts downward pressure on imported goods prices.

• It has no effect on imported goods prices.

• It increases the prices of imported goods.

• It causes imported goods prices to fluctuate randomly.

What has been a significant trend in real yields over the past 20 years?

• Real yields have fluctuated without a clear trend.

• Real yields have remained stable.

• A significant decrease in real yields.

• A consistent increase in real yields.

What is the current market perception regarding inflation and downturn risks?

• Markets are underestimating both risks.

• Markets are overestimating both risks.

• Markets are accurately assessing both risks.

• Markets are ignoring both risks.

What is the expected impact of the tight labor market on wage growth?

• It will likely accelerate wage growth.

• It will cause wage growth to decrease.

• It will have no impact on wage growth.

• It will likely slow down wage growth.

What is the current state of real short-term interest rates and unemployment?

• Real short-term interest rates are high, and unemployment is rising.

• Real short-term interest rates are negative, and unemployment is stable.

• Real short-term interest rates are zero, and unemployment is at a 50-year low.

• Real short-term interest rates are fluctuating, and unemployment is unpredictable.