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Of course since every country imports a ton of goods. Even if I had stable wages and production in my country, if suddenly every trade partner was charging me
by whatever1 4y ago
Of course since every country imports a ton of goods.
Even if I had stable wages and production in my country, if suddenly every trade partner was charging me more for my imports (for example due to supply chain constraints), then my inflation would go up.
It is very stupid to just speak for inflation by looking at one country.
- UncleMeat 4y agoThis feels like a cop out. If this were just a property of imports and US monetary policy, then should foreign inflation be in proportion to US imports?
- whatever1 4y agoEven for US production, if we assemble let’s say motherboards with imported microchips, suddenly our prices went up. It is not because wages were up. Crushing the wages and sending people to unemployment will not solve the problem of imported inflation. Unless you are the sole importer of goods for every exporting economy.
- radford-neal 4y agoIt should be quite possible for one country to have no inflation while other countries do have inflation, if the inflation is caused by monetary policy, not real, global production difficulties. The exchange rates should just shift continually so that the country that isn't expanding its money supply doesn't experience inflation.
- whimsicalism 4y agoWhy would they charge more for the imports because the Fed in another country increased the money supply in that country?
- bryanlarsen 4y agoSo you're saying it's not a monetary phenomenon in the countries without QE. Which means you admit there's a mechanism for inflation without it being a monetary phenomenon. Which means that it's possible that it's not a monetary phenomenon in the US.