On the US inflation debate in January 2022
Kia ora Adam from New Zealand. I would be very interested in your opinion on the role of climate change adaptation and energy transitions in future inflation predictions. If current inflation arises as a distributional problem caused by the pandemic and clogged up supply chains, what confidence can be put in a steadying of prices in sectors such as energy and transport, when such deep changes are required before the end of the decade? I know you are increasingly interested in the role of climate change and energy transition. Keen to know your thoughts. Best, Mark
Funny to read all the concern considering how recently the question was how to get inflation to hit 2%, and 4% inflation was being mooted by the IMF as a new ideal. Wouldn't a bit of a wage-price spiral be good for chopping into some of the recent excess accumulation of wealth by rentiers and asset-holders?
The level of inflation is not as widespread as some think. The most recent rise is mostly due to expansionary monetary policy ion a supply constrained environment. The Fed, as always, holds the reins! https://marcusnunes.substack.com/p/an-inflation-chart-book