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How does degraded supply chain throughput connect to inflation?
by dustingetz 5y ago
How does degraded supply chain throughput connect to inflation?
- cs702 5y agoWhen there are supply-demand imbalances, e.g., people in France having to wait three months to get a new boiler versus 24-48 hours before the pandemic[a], the price of newly installed boilers in France tends to increase sharply. For a more general answer, see: https://en.wikipedia.org/wiki/Demand-pull_inflation https://en.wikipedia.org/wiki/Demand-pull_inflation https://en.wikipedia.org/wiki/Cost-push_inflation https://en.wikipedia.org/wiki/Cost-push_inflation -- [a] https://www.connexionfrance.com/French-news/Which-products-are-or-could-be-hit-by-stock-shortages-in-France https://www.connexionfrance.com/French-news/Which-products-a...
- dghlsakjg 5y agoYour question using synonyms: How does reduced supply lead to higher prices?
- im3w1l 5y agoThe market price is set so that demand and supply match. If supply of some good decreases, then the price will keep increasing until a sufficient amount of people can no longer afford it. This can range from something fairly benign, like keeping an old car around a few years longer, to something disastrous like people starving.