The Great Inflation Debate

Naked Capitalism has published the article The Great Inflation Debate: Supply Shocks and Wealth Effects in a Multipolar World Economy.

Setting the record straight and identifying less destructive pathways forward than round after round of interest rate increases.

Economic history is full of episodes in which inflation triggered both intense social conflicts and heated debates among economists and policymakers over its causes. The present worldwide upsurge in prices is no exception: from the moment governments and central banks first contemplated how to protect their citizens from COVID, inflation hawks and doves divided over whether the measures would touch off an inflationary price spiral.

This contradicts many of my assumptions about the cause of the current inflation. The inflation is about supply chain problems, but the people exercising the demand that drives inflation are not the ones I suspected.

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