Ben Bernanke’s so upset with deflation these days, that he’s ignoring one of the big problems out there.
Inflation. Namely, bra inflation.
The NYT explains: While clothes designers have whittled down dress sizes so that even a musclebound woman can wiggle into a size 2, brassiere makers are defying fashion convention by selling bras with bigger cup sizes. These days, many women — to their shock or glee — are finding that DD is becoming the new C.
No, it’s not that bust sizes are getting bigger. It’s just that these labels are getting defined down. It’s like how the smallest size at Starbucks is “Tall”. Of course, there’s grade inflation, which everyone knows about. Nobody’s gotten a “D” in a class since the Vietnam War.
The problem isn’t that the measurements have changed per se — like with the dollar, we could add an extra zero to every bill and it wouldn’t necessarily be a crisis — but that market participants are likely to have no idea what these numbers mean. And that creates confusion, indecision and stagnation.
Wake up Ben! Deflation is not your problem!