5 ms·

If it's -only- a supply shock, then prices would eventually come down, right? Well, we are finding that to be less and less true. So something else is going on

If it's -only- a supply shock, then prices would eventually come down, right? Well, we are finding that to be less and less true. So something else is going on beneath the surface.

ksdale 5y ago
Or there's still a massive pandemic happening and supplies of everything are still very shocked.
- partiallypro 5y ago
  Then in 4-5 years prices would revert, unless it's not just a supply shock and is instead monetarily lead. Prices haven't gone up as much in other countries. The US has one of the highest inflation rates coming out of the pandemic.
SketchySeaBeast 5y ago
As I understand it we're still dealing with supply issues and will be for a long while still. Chips are still incredibly hard to source and that naturally affects a giant range of consumer products.
panick21_ 5y ago
> If it's -only- a supply shock, then prices would eventually come down, right? Not necessarily. > Well, we are finding that to be less and less true. So something else is going on beneath the surface. That's fine. We have ways to do monetary policy while accepting whatever else is going on. If you target NGDP Levels your demand function already balances supply and demand correctly by itself.
- partiallypro 5y ago
  If prices are up 30%-100% in some instances, and stay up 50% despite the supply chain recovery, then it's not only because of the supply chain. The US has one of the highest inflation rates coming out of the pandemic. Japan essentially has had no inflation. >That's fine. We have ways to do monetary policy while accepting whatever else is going on. That assuming you think the Fed won't make a major policy mistake or hasn't already. You act like monetary policy is simple, it's not. I think MMTers have ruined a lot of people's perception on the complexity of monetary policy.

5 ms·

If it's -only- a supply shock, then prices would eventually come down, right? Well, we are finding that to be less and less true. So something else is going on

by partiallypro 5y ago

If it's -only- a supply shock, then prices would eventually come down, right? Well, we are finding that to be less and less true. So something else is going on beneath the surface.

ksdale 5y ago
Or there's still a massive pandemic happening and supplies of everything are still very shocked.
- partiallypro 5y ago
  Then in 4-5 years prices would revert, unless it's not just a supply shock and is instead monetarily lead. Prices haven't gone up as much in other countries. The US has one of the highest inflation rates coming out of the pandemic.
SketchySeaBeast 5y ago
As I understand it we're still dealing with supply issues and will be for a long while still. Chips are still incredibly hard to source and that naturally affects a giant range of consumer products.
panick21_ 5y ago
> If it's -only- a supply shock, then prices would eventually come down, right? Not necessarily. > Well, we are finding that to be less and less true. So something else is going on beneath the surface. That's fine. We have ways to do monetary policy while accepting whatever else is going on. If you target NGDP Levels your demand function already balances supply and demand correctly by itself.
- partiallypro 5y ago
  If prices are up 30%-100% in some instances, and stay up 50% despite the supply chain recovery, then it's not only because of the supply chain. The US has one of the highest inflation rates coming out of the pandemic. Japan essentially has had no inflation. >That's fine. We have ways to do monetary policy while accepting whatever else is going on. That assuming you think the Fed won't make a major policy mistake or hasn't already. You act like monetary policy is simple, it's not. I think MMTers have ruined a lot of people's perception on the complexity of monetary policy.