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The situation is absolutely unprecedented and it’s going to be a real challenge for policymakers to get the balance right. In retrospect, some level of inflati
by wbsss4412 5y ago
The situation is absolutely unprecedented and it’s going to be a real challenge for policymakers to get the balance right.
In retrospect, some level of inflation was going to be inevitable. The question is how to balance it with employment and growth going forward.
- lazide 5y agoAgreed. A big question in everyone’s mind i think is if this is ‘permanent’ inflation ‘catching up’ from all the QE and money printing/stimulus, or a temporary spike as pent up demand from the drop last year unblocks and rushes for the door, and will subside afterwards as the larger deflationary (consumer price wise) trend continues afterwards. I personally suspect it will be a 70’s style ‘step’ (down related to buying power of a given dollar, probably not visible in relation to other currencies though, and up in prices), albeit without a strong hike in interest rates that happened under Carter and caused really weird other effects. They didn’t have the overall consumer price deflation due to tech and global trade like we’ve had for awhile now. It would be nice to have a crystal ball, but alas.