Inflation or Deflation ahead?

[AsianXpat0]

Another thing that’s “transitory” is life.

[huja]

For instance, a lot of corporate executives have recently been telling investors that they’ve used inflation as an excuse to increase their own prices and margins. Progressives have frequently cited this as an example of how the real problem is profiteering by big business; but you could just as easily interpret it as an example of how, after a while, the psychology of inflation can become self-perpetuating. It’s still possible that inflation will subside on its own. Maybe inflation will ease naturally. But it’s hard to look at a report like January’s and feel like this is still a problem that will fix itself.

https://slate.com/business/2022/02/i...1CsEAjT2zFrNyA

[huja]

https://www.economist.com/finance-an...VjfkkFSrf09ta0

[huja]

For the tl:dr crowd . . . Three arguments to support possible post-COVID-19 inflation:
1. People have flush bank accounts due to nearly a year of quarantine and have lots of pent up demand.
2. Longer-term, globalization is retreating and the world's working-age population is shrinking. i.e. The days of China making cheap stuff for the rest of the world is coming to an end.
3. Politicians/policy makers will fuck things up.

https://www.economist.com/leaders/20...-3sjQTiVZnj9rM

Looks like #3 Politicians/policy makers will fuck things up, is leading the race.

[freeier]

The ex NY fed + FOMC vice chair bill dudley has been active in bloomberg these days. his comments are quite deviated from what he used to be (a dove)... key message is, the fed need to force an equity correction for their effort to be effective in fighting inflation.

[huja]

For the U.S. only, but certainly an interesting tool to figure out your "personal inflation."

https://www.nytimes.com/interactive/...XZOWppr6kETY6I

[shri]

Some interesting observations from Barry Rizthold

In the second segment following the one I have jumped to in the link, called hard vs soft - he brings up an jnteresting point that I have not heard much or anything significant about a shift in a services vs goods economy due to everyone staying home.

Worth spending 10 mins on it.

https://youtu.be/_e3bnExOcOg?t=569