3 ms·
Conversely, I think it's unhelpful to excuse away inflation as supply/demand issue and explain that if you just exclude all the things people buy, inflation rea
by rory 5y ago
Conversely, I think it's unhelpful to excuse away inflation as supply/demand issue and explain that if you just exclude all the things people buy, inflation really isn't that bad. Inflation in the 70's was also caused by supply/demand issues and problems with supply chains (that's what an oil shock is).
Obviously the specifics determine the appropriate response, but they don't invalidate the headline number. That's the same logic the inflation panic folks used to pretend there was high inflation when there wasn't.
- matthewdgreen 5y agoIf all you want to do is point at the headline number and go no farther, that’s fine. But it seems fairly pointless unless the goal is just to kvetch about something that’s generally unfortunate. In this thread nobody is denying the headline number, they’re just pointing out that a lot of these effects may cease to exist in the future even if we do nothing else. Hence maybe it’s not something to panic about.