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With the economy poised to grow at its best since 1983, inflation lurked: Economy


That is the demand for inflation. You can have cost-push inflation due to supply bottlenecks or supply shocks, which is what we’re seeing right now. I only know about the current shortage of semiconductors causing cost-push inflation for downstream industries, but I’m sure other industries are in the same boat.

The good news is that it’s not from the rampant destruction of capital you see after war or natural disasters, but from the spike in demand in industries where companies were badly forecasting at the start of the pandemic. and companies are investing heavily to build supplies, so supply bottlenecks are likely to subside in the next 18 months (for semiconductors at least.)

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