> “I think I was wrong then about the path that inflation would take,” she told CNN’s Wolf Blitzer. “There have been unanticipated and large shocks that have boosted energy and food prices, and supply bottlenecks that have affected our economy badly that I ... at the time, didn’t fully understand.”
We put a bunch of money into the economy as a response to Covid. More money means prices go up. But we put in a fixed amount of money, so there should have been a fixed amount of inflation.
The real explanation here is that there is less stuff! International trade is a hot mess right now and things are just literally more expensive because we have become materially poorer.
We put a bunch of money into the economy as a response to Covid. More money means prices go up. But we put in a fixed amount of money, so there should have been a fixed amount of inflation.
The real explanation here is that there is less stuff! International trade is a hot mess right now and things are just literally more expensive because we have become materially poorer.