3 ms·
I've recently heard there's the IMF has been looking at the effect of supply side effects on inflation. The best summary I can find is in this NY Fed post (http
by flapjaxy 3y ago
I've recently heard there's the IMF has been looking at the effect of supply side effects on inflation. The best summary I can find is in this NY Fed post (https://libertystreeteconomics.newyorkfed.org/2022/08/how-much-did-supply-constraints-boost-u-s-inflation/ https://libertystreeteconomics.newyorkfed.org/2022/08/how-mu...)
"Our analysis of the relative importance of supply-side versus demand-side factors finds 60 percent of U.S. inflation over the 2019-21 period was due to the jump in demand for goods while 40 percent owed to supply-side issues that magnified the impact of this higher demand."
I've always found it interesting that econ discourse usually takes such a rigid view for the causes of phenomenon, if this were another quantitative discipline I imagine there'd be a softer position. Anywho, just chiming in to opine that the models for economics folks argue about is likely more nuanced than portrayed.