Print Inflation remains elevated. The market doesn’t anticipate it will stay high for very long. But the abnormal price hikes we’ve seen so far have the economic and financial commentariat in a tizzy. The explanations for inflation are a combination of demand-side and supply-side factors. On the demand side, there’s the Fed’s continued monetary expansion. On the supply side, there’s lingering production bottlenecks from the pandemic. Both of these factors continue to push up prices, the argument goes.
I’m personally skeptical that the demand-side factors are currently in the driver’s seat. You can’t infer the looseness of monetary policy from […]
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