Is Inflation Driven by Supply Shortages or Demand?

The Most Important Thing

risk is largely a matter of opinion

Nikolas Kong

·5 years ago

shared a link post in group #The Most Important Thing

Gist is Inflation is being caused by too much demand chasing too few goods, so really supply chain shortages and oil prices rising.

Chris Nheu
Just testing my understanding. But this curve seems to suggest that consumer demand was abnormally high, and that it’s not just supply demand mismatch driving inflation (which is what the YouTuber seemed to be saying). Am I misinterpreting this article? seekingalpha.com/article/..

Nikolas Kong
Yes. Price growth was supported by fiscal and monetary stimulation. Now that has dried up. And Biden probably won’t be able to pass any big spending bill before mid terms.

Nikolas Kong
Google 2010 deflation

Nikolas Kong
More and more people are sounding the deflation alarm

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