3 ms·
Due to aggregate supply constraints due to the pandemic there were not enough aggregate goods. Also the pandemic dramatically constrained spending and increase
by lamontcg 3y ago
Due to aggregate supply constraints due to the pandemic there were not enough aggregate goods. Also the pandemic dramatically constrained spending and increased savings, which then rebounded sharply after it was done, creating a tidal wave of aggregate demand. The result was rising prices.
And that is against a background of 10 years of ZIRP and the government threw money at corporations through PPP and blunted the effect of the pandemic recession and we were clearly against the inflection point of the short-term phillips curve.
Market forces should entirely predict all of this.
(And companies are ALWAYS ALWAYS ALWAYS "greedy", the headline line should probably be something like "Millennials wake up one morning and discover how capitalism has worked all along [SHOCKED]").