Posted on 09/09/2021 10:28:00 AM PDT by yesthatjallen
Price gains are shooting higher across many advanced economies as consumer demand, shortages and other pandemic-related factors combine to fuel a burst of inflation.
The spike has become a source of annoyance among consumers and worry among policymakers who are concerned that rapid price gains might last. It is one of the main factors central bankers are looking at as they decide when — and how quickly — to return monetary policy to normal.
Most policymakers believe that today’s rapid inflation will fade. That expectation may be reinforced by the fact that many economies are experiencing a price pop in tandem, even though they used vastly different policies to cushion the blow of pandemic lockdowns.
The shared inflation experience underscores that mismatches between what consumers want to buy and what companies are able to deliver are helping to drive the price increases. While those may be amplified by worldwide stimulus spending, they are not the simple result of nation-specific policy choices — and they should eventually work themselves out.
“There is a lot of stimulus in the system, and it is pushing up demand and that’s driving higher inflation,” said Kristin Forbes, a Massachusetts Institute of Technology economist and former external member of the Bank of England’s Monetary Policy Committee.
“Some of these big global moves do tend to pass through and prove temporary,” Ms. Forbes said. “The big question is: How long will these supply chain pressures last?”
SNIP
(Excerpt) Read more at nytimes.com ...
Wow could the NYT be any more a propaganda whore for the DNC?
This is a remarkably stupid article.
‘We will take everything you have and you will be happy.’ /s
“The spike has become a source of annoyance among consumers“
Oh, an annoyance... that’s what it is when I pay an extra buck or two for gas and an extra 20% minimum for food that’s increasingly getting scarce. An annoyance....
Inflation is what it always was - not merely a monetary phenomenon, but also theft from those who save. It punishes saving, resulting in less of it - and funds for future investment come from savings. So, this “brilliance “ at the NY Slimes is celebrating a future decline in investment, and thus less competitiveness in the world economy. Immoral idiot!
I am not even sure what they are trying to say. The problems are material shortages, fuel prices, and shortage of labor (which could be good for workers if employers have to pay more, but bad for spenders... and it’s an open question whether people want to work like they did in 2019 since they say there are millions of job openings and nobody wants to take them). Ports are backed up, shipping containers in short supply, commodity items scarce.
Inflation is unlikely to “fade” (which would imply deflation). They must mean the rate of inflation. It is not likely to slow down before end of 2022 imho.
But how can someone be charged with writing this article and vetted by an editor neither of whom know the distinction between these terms?
Millenial Jeanna Smialek
8 years old when 9/11 hit.
Bloomberg News
6 years 4 months
Reporter
Apr 2013 - Apr 20196 years 1 month
Washington D.C. Metro Area
U.S. Eco team Intern, Economic Indicators reporter
Jan 2013 - Apr 20134 months
Washington D.C. Metro Area
Education
New York UniversityNew York University Graphic
New York University
Master of Business Administration - MBA
2018 - 2020
University of North Carolina at Chapel HillUniversity of North Carolina at Chapel Hill Graphic
University of North Carolina at Chapel Hill
Bachelor’s degreeJournalism and Global Studies majors, Chinese minor
2009 - 2012
The pandemic is losing steam so now they will starve us into compliance!
Yep. The dumbest journOlist there. Dumber than MoDo. Or the professional liar Maggie Haberman.
I was expecting to see Paul Krugman’s name attached to this.
We all know what an economics genius he is.
Don’t worry! Governments will take care of all needed “investments,” and you and I can just consume. (Until we starve.)
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