Interesting. Definitely worth the read. My quick summary to get you interested enough to deal with the paywall: “The culprit is often identified as the American Rescue Plan . . The weight of the evidence, suggests. . . The central cause was the pandemic” caused"supply" disruption and how businesses reacted to, and continue to react to that disruption.
Just to add to your comment:
The results show that supply-chain variables directly accounted for 79 percent of the rise in underlying inflation in 2021. These effects then continued into 2022, with ongoing supply issues directly explaining 60 percent of the rise in inflation that year. The rest was more than accounted for by spillovers from the 2021 supply-driven inflation. All of which leaves only a modest role for demand-driven effects like the covid relief package.
Yes, it seems to me that it’s really important for us to learn the correct lesson so we can be ready for “the next one”
Ya bickering and blame aside, it’s important to make data informed decisions for future scenarios.
However in the article the quoted CEO states that is wasn’t caused by “greeflation” however profit motives were/are very clearly an issue as well.
