How Inflation Fooled Almost Everybody
This all looks like a classic instance of a major supply shock—or two of them if you include the war in Ukraine—hitting the economy, creating havoc, and then gradually fading away. In other words, Team Transitory, although it underestimated the scope of the shocks and how long they would last, may well have been right in its basic diagnosis. Buoyant demand exacerbated the inflation problem, but it was fundamentally a supply-side phenomenon.
One of the better takes on our recent bout of inflation.
I'm not sure it matters that someone at the New Yorker understands what happened when half or more of the voters believe inflation is still raging.
Everyday my Facebook feed is filled with images of price comparisons of today to the COVID days (many with just made-up prices). Each post has hundreds of comments on how it's Biden/Harris's fault and Trump will fix it.
I guess they don't remember that you couldn't find toilet paper when Trump was in charge.
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