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Inflation is still inflation if it is caused by supply issues.
by frankbreetz 5y ago
Inflation is still inflation if it is caused by supply issues.
- matthewdgreen 5y agoYes but the treatment is potentially very different. Having the Fed use its blunt monetary tools to control a price increase might not make sense if that increase is caused by a specific supply-chain issue. “Inflation is still inflation” is like a doctor saying “a headache is still a headache” and ignoring the fact that one patient’s headache is caused by an operable brain tumor, while the other drank too much the night before.