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> We are far above the 2019 supply of goods in nominal terms You're looking at aggregate. There are specific types of goods, the lack thereof, that's driving u
by mohanmcgeek 5y ago
> We are far above the 2019 supply of goods in nominal terms
You're looking at aggregate. There are specific types of goods, the lack thereof, that's driving up the CPI. Right now I hear the car prices in US are pretty high and the production is lower because of the chip shortage.
The supply for a lot of other things is pretty elastic.
- vladimirralev 5y agoAgain, how do you define a shortage? Chip production is way above the 2019 levels. Moreover the utilisation of the fabs, new and old processes combined is much higher[1]. Semiconductor fab worker count is at all time high, 10% above 2019. Why isn't this excess demand (caused by too much free money) as opposed to a "shortage"? [1] https://www.semiconductors.org/chipmakers-are-ramping-up-production-to-address-semiconductor-shortage-heres-why-that-takes-time/ https://www.semiconductors.org/chipmakers-are-ramping-up-pro...
- mohanmcgeek 5y agoCar sales are down double digit percentage across the world and used call prices are up 30% > Why isn't this excess demand (caused by too much free money) as opposed to a "shortage"? It might very well be excess demand. The idea is that supply should always be elastic and grow to meet the demand. In this case it didn't. But this "excess demand" can't be attributable to lower interest rates because people, I imagine, aren't borrowing to buy these goods.