Exactly
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Seems like lots of people are trying to impose a pre-covid lens on issues that have become totally skewed bc of the pandemic. We’re trying to memory hole everything then staring at the effects like “where did this come from?!”
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It’s also because they wanted it to be inflation so that they could argue for austerity. Well, not “also” - only
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Even adjusting for COVID you still see some inflation across the economy this year. It's less than if you don't adjust for COVID but still above modern baselines. The Fed believes it will be transitory and not that bad (hasn't been so far), not that it isn't happening.
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Is there some genuine inflation from supply distortions? Sure, but the elite focus on this is definitely not so much on inflation as on wage growth as labour wields a bit of leverage over the past six months.
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May be hard to disentangle for a while. SARS-cov2 Delta variant looks like a challenge we are not yet meeting.
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