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Drudge Retort: The Other Side of the News
Wednesday, September 08, 2021

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 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.

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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.

Before the pandemic, advanced economies had spent years trying to coax inflation higher, trying to stop an economically damaging downward spiral that had begun to take hold.

If inflation does fade as policymakers expect, the current burst could actually offer benefits: In the United States, it has helped to nudge inflation expectations back out of the dangerously low zone, to levels that are historically consistent with healthy price gains. It has proved harder for central bankers to move prices up than it is for them to cool them off, so that opportunistic inflation could help the Fed to nail its price goals in the longer run.

#1 | Posted by tonyroma at 2021-09-07 08:19 PM | Reply

It's something that makes sense.

#2 | Posted by jakester at 2021-09-07 09:50 PM | Reply

Just as I predicted

- - jefftoecentreberly

#3 | Posted by ChiefTutMoses at 2021-09-08 01:04 AM | Reply

More inflation in US and world economies would be a good thing. No need to go back to the late 70's and early 80's, please, but 3-4% annual CPI growth would provide a number of macro benefits, and would make the job of helping the economy in recessions easier. The previous guy wanted to see negative rates, but his comments were driven by his highly levered balance sheet of investment properties, and demonstrated his lack of macroeconomic understanding...

#4 | Posted by catdog at 2021-09-08 10:07 AM | Reply | Newsworthy 2

I don't see inflation as a good thing because wages for the vast majority never keep up with it.

#5 | Posted by ScottE at 2021-09-08 11:02 AM | Reply | Newsworthy 2

C'mon Scotte, you aren't looking at the bottom line for the 1%. So workers fall behind due to inflation, that will motivate them to go get a third or fourth job to keep up....that kind of productivity helps the owner class keep their dividends coming in.

Stop being so selfish and think of the billionaires for a change.

#6 | Posted by Nixon at 2021-09-08 11:10 AM | Reply | Funny: 1

#5 | Posted by ScottE

Exactly that.

#7 | Posted by GalaxiePete at 2021-09-08 11:18 AM | Reply

#7

On the macro level inflation doesn't exactly work like that. A modest amount of inflation is always needed over deflation or then things really fall apart.

Catdog is correct.

#8 | Posted by tonyroma at 2021-09-08 11:59 AM | Reply

Inflation is not a good thing. Not for the general public. And never for the Party in power.

#9 | Posted by moder8 at 2021-09-08 02:29 PM | Reply

So inflation is better than deflation but it benefits some at the expense of others. And those on the losing end are those who already have less.

#10 | Posted by ScottE at 2021-09-08 03:27 PM | Reply

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