- Prices can go up for one of two reasons. Either there is a sudden increase in demand for goods and services relative to available supply, or there is an abrupt downward shift in supply relative to existing demand.
- Tighter monetary policy will not cure the supply problems in the energy market, nor will it bring forth more wheat or corn.
- As the result of the Russia-Ukraine experience, the international order should and will readjust, and some of the relative price changes will become permanent.
For further details see:
Inflation, And Then There Is Inflation