Nobody on the panel believed him because inflation was very high just previously during Carter's regime. What he explained is that the manufacturing capacity in Asia is growing by orders of magnitude. High inflation requires BOTH, excess monetary expansion PLUS lack of goods and services to absorb the cash. There is no shortage of goods and services from Asian countries as far as the eye can see.
Besides, Western economies are not growing at a fast rate. So there is no hard demand push.
Good answer.
Had time to think about that now.
That has not held true for certain items that are in short supply. There is a short supply of gold now, but the price is extremely under it's value. On the other side of the ledger, we are virtually swimming in oil and yet the price of gas is inflated. We are driving much less too.
We're the massive rates of interest under Carter due to lack of goods and services? In real terms, I think not. Interest rates were high due to monetary policies at the fed. We continually manipulate the market and specific items sold.