While it is true that base effects should create more favorable terrain for year-over-year headline CPI inflation readings to decline in this calendar year, the full implications of the current commodity supply shocks stemming from the Ukraine invasion still remain underrated. It...
Repeated price crashes in a variety of industries led to a situation of underinvestment in productive capacity that created the conditions for the inflation we see today.
If we are trying to describe the nature of the real constraints that the economy has been facing over the past 6-12 months, we need a richer economic vocabulary than one that reduces every inflationary constraint to a domestic labor constraint.
This is meant to be a quick "micropost" and may be light on linking & original charts I was recently quoted saying that oil prices surging...
The recently-announced SPR release is the first step in a broader program to address oil price volatility in today's geopolitical environment.
