Taps Coogan – September 1st, 2020

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Via Bank of America, the following chart shows the relationship between inflation and the fertility rate (births per 1000 women). The fertility rate is delayed by 25 years in this chart.

The relationship between the fertility rate (plus 25 years so that those babies enter the workforce) and inflation is quite strong.

If inflation is what policy makers are after, perhaps they should stop focusing so much on the Fed and instead focus on the economic reforms needed to ensure prosperity for young workers so that they feel empowered to start families.

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