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People need to decide whether they think this is because of supply chain issues and the demand spike following COVID or if it's because of the Fed.
The ongoing supply-demand imbalance that is contributing to rising inflation worldwide is in my view the most pressing short-term problem that needs to be solved by hackers, engineers, and entrepreneurs today.[a] We need more people doing what Flexport's Ryan Petersen did with LA ports[a]: Figure out quick, cost-efficient ways to get our current system out of its currently degraded state and back to operating smoothl…
How does degraded supply chain throughput connect to inflation?
https://en.wikipedia.org/wiki/Demand-pull_inflation
https://en.wikipedia.org/wiki/Cost-push_inflation
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[a] https://www.connexionfrance.com/French-news/Which-products-a...
So while the climb up is bad, the prices themselves aren't even unprecedented. In lieu of an extraordinary global supply chain crisis, these numbers actually seem impressively low. We cocked up everything for a year and prices finally shot back to... prices from 7 years ago?
If fed policy has any effect at all, I think we owe them one for being so cool-headed and non-drastic these past two years. They're doing much better than politicians or the media, at least.
[1] I have some commentary here, and more in a reply to user `anm89` https://news.ycombinator.com/item?id=29114086
People need to decide whether they think this is because of supply chain issues and the demand spike following COVID or if it's because of the Fed.
Aren't more products being bought than ever despite the supposed supply chain issue? If there is more stuff and still not enough then shouldn't we assume that there is too much money? It looks like standard inflation by a devaluing of the dollar to me.
This doesn't rule out a "demand spike following COVID" as mentioned by the parent. It's like a cartoon where someone (COVID) steps on the hose and a big bulge of water (demand + extra savings) forms. Now that bulge is working its way through the economy causing shortages (analogy completely falls apart here).
Earlier quoted context omitted.
Aren't more products being bought than ever despite the supposed supply chain issue? If there is more stuff and still not enough then shouldn't we assume that there is too much money? It looks like standard inflation by a devaluing of the dollar to me.
> Aren't more products being bought than ever despite the supposed supply chain issue? If there is more stuff and still not enough then shouldn't we assume that there is too much money? This doesn't rule out a "demand spike following COVID" as mentioned by the parent. It's like a cartoon where someone (COVID) steps on the hose and a big bulge of water (demand + extra savings) forms. Now that bulge is working its way…
If something goes wrong (or more wrong) we will have no effective economic tools available because they are constantly running as if we are in crisis already.
Interest rates really should have went up a couple of years ago. Not just for the sake of stemming inflation, but what good is the tool of lower rates in bad times when they are already at bottom in good times? If something goes wrong (or more wrong) we will have no effective economic tools available because they are constantly running as if we are in crisis already.
People need to decide whether they think this is because of supply chain issues and the demand spike following COVID or if it's because of the Fed.
It's incredible. It's the same strategy that some politicians use in Argentina: they find any kind of thing to blame for inflation, except for monetary policy. Americans, please don't imitate Argentina, keep a healthy economy.
"Why the inflation we're seeing now is a good thing" -MSNBC tweet that got deleted.
Edit: "Yes, inflation is back, and you should probably be relieved if not outright happy."
https://www.reuters.com/business/inflation-revival-is-victor...
The ongoing supply-demand imbalance that is contributing to rising inflation worldwide is in my view the most pressing short-term problem that needs to be solved by hackers, engineers, and entrepreneurs today.[a] We need more people doing what Flexport's Ryan Petersen did with LA ports[a]: Figure out quick, cost-efficient ways to get our current system out of its currently degraded state and back to operating smoothl…
How does degraded supply chain throughput connect to inflation?
How does reduced supply lead to higher prices?