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flapjaxy | 2 years ago

I've recently heard there's the IMF has been looking at the effect of supply side effects on inflation. The best summary I can find is in this NY Fed post (https://libertystreeteconomics.newyorkfed.org/2022/08/how-mu...)

"Our analysis of the relative importance of supply-side versus demand-side factors finds 60 percent of U.S. inflation over the 2019-21 period was due to the jump in demand for goods while 40 percent owed to supply-side issues that magnified the impact of this higher demand."

I've always found it interesting that econ discourse usually takes such a rigid view for the causes of phenomenon, if this were another quantitative discipline I imagine there'd be a softer position. Anywho, just chiming in to opine that the models for economics folks argue about is likely more nuanced than portrayed.

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