Regular reader may remember that there's three general sources of inflation (modulo random catastrophes): cost push, demand pull, wage push. The cabal of Evangelical Radical Right Wingnuts accept only the last as a cause. Many wee little LCD electrons have been spent on righting that wrong. And now, lo and behold,
a lamestream pundit takes up the spear. I feel so much better.
The inflation that has plagued both the United States and Europe since 2021 has come substantially from so-called supply-side factors, or shocks hampering the economy's ability to churn out goods: a pandemic that closed plants, wars that raised prices of grain, climate change-induced crop failures that did the same, Houthi rebels launching drone attacks on one of the world's busiest maritime choke points and so on. For many of those supply-side woes, higher rates are making matters worse. "The Fed's main tool for lowering inflation," as economist Mark Zandi told The Atlantic, "is actually doing the opposite."
I've always seen Milton as a paranoid blowhard. So, in essence, does the author
But by the 1970s, the economist Milton Friedman began to recruit a following for his view of inflation as "always and everywhere a monetary phenomenon,"meaning inflation occurred whenever the money supply outstripped the goods or services being produced.
Well, NO.
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