UBT - Inflation And Capacity Utilization
At Cumberland, we continuously have internal strategy discussions. We decided to make one such discussion, on the subject of inflation and US capacity utilization, available in the form of a commentary to clients, consultants, and all readers.
Below you'll find a summation of our discussion, written by Bob Eisenbeis, Cumberland Advisors Chief Monetary Economist.
Inflation, Deflation, and Capacity Utilization
During the pandemic, we have seen both a drop in aggregate demand as well as a shutdown in supply, resulting in a precipitous drop in capacity utilization. To many economists, this convergence means that inflation will