2 ms·
Unfortunately "Inflation from too much money chasing too few goods" is often in people's mind with only a focus on too much money, and rarely any thought to too
by dv_dt 5y ago
Unfortunately "Inflation from too much money chasing too few goods" is often in people's mind with only a focus on too much money, and rarely any thought to too few goods - especially when we know right now it's almost certainly to a huge degree temporary supply dips in goods - with waves of covid still rising in international supply, as well as the logistics of companies dropping production during pandemic (e.g. w/ automotive chips).
It's also a metrics problem - you can see inflation increases which are easy to equate to units of money, but I don't think there's as universal an index of supply. Likely some industrial output index over time would better quantify how much inflation is pandemic disruption of supply, vs money supply. I predict it's mostly supply disruption.