- The first problem with the view that inflation is largely a consequence of supply-chain issues concerns the timing of inflation.
- The second problem concerns the way in which prices have (and are projected to) evolve.
- Inflation can be a serious problem, especially if it becomes persistent. Yet, the willingness of politicians to blame supply disturbances and corporations rather than acknowledging that loose monetary policy is largely responsible for today’s inflation is even more worrisome.
For further details see:
Are Supply Chain Issues Driving Inflation?