‘Cost of money’ explains depressed US consumers – NBER research

Larry Summers and co-authors highlight “disconnect in inflation measurement”

Larry Summers
Larry Summers
Photo: Ralph Alswang/Lawrence H Summers

A rise in the “cost of money” explains why US consumers are so unhappy, despite low unemployment and falling inflation, new research finds.

Former US Treasury secretary Larry Summers and co-authors Marijn Bolhuis, Judd Cramer and Karl Oskar Schulz say there is a “disconnect in inflation measurement”. The headline inflation indexes that central banks use typically do not include the cost of credit, despite this being a major reason for households facing rising bills.

In their working paper

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account