USA: Why ‘Price Stability’ Is a Myth

In real estate, I’ve seen firsthand how prices never move in perfect harmony—a lesson that holds true well beyond property. When the cost of one good rises, it often means people are shifting their spending elsewhere, rather than everything becoming more expensive at once. Take technology, for example: as our phones become cheaper and more powerful, luxuries with limited supply—think hotel rooms, sports tickets, or college tuition—have only grown pricier. This dynamic challenges the idea that central banks can engineer true price stability. The reality is, prices reflect a web of decisions, global trends, and shifting demand, which no single policy can fully control. I’ve learned through managing portfolios and navigating hundreds of transactions that a steadier dollar might encourage more investment in productive assets, rather than in inflation hedges, potentially narrowing price gaps between goods. But the truth remains: lasting price stability is a myth. Changing prices often signal where growth and new opportunities are emerging—something I always keep in mind when evaluating investments and advising clients on where real value lies.