- 19 Aug 2021 12:29
#15186288
"The near-collapse and rapid bounceback of several coronavirus-affected sectors, such as travel, led to what economists call a “base effect”: when the year-over-year price increases are sharp, but only because they’re coming back up from a low point caused by an economic shock.
It may surprise many Americans that even during times of strong growth and very low inflation (like the late 1990s) or weak growth and low inflation (like the years following the Great Recession), more than half of all goods and services are usually experiencing price increases. In part, this is because it is awfully hard for employers to cut nominal wages, even in a recession. And economists see some mild, steady economywide inflation as a sign of a healthy economy. The Fed, for instance, actively targets an average overall inflation level of 2 percent per year.
For now, inflation is well contained and the Fed should monitor it closely, but not act rashly. Cheaper furniture, fast food, used cars and airfares would be nice, but they aren’t worth cutting the economic recovery short."
https://www.nytimes.com/interactive/2021/08/18/opinion/inflation-economy-transitory.html
"The near-collapse and rapid bounceback of several coronavirus-affected sectors, such as travel, led to what economists call a “base effect”: when the year-over-year price increases are sharp, but only because they’re coming back up from a low point caused by an economic shock.
It may surprise many Americans that even during times of strong growth and very low inflation (like the late 1990s) or weak growth and low inflation (like the years following the Great Recession), more than half of all goods and services are usually experiencing price increases. In part, this is because it is awfully hard for employers to cut nominal wages, even in a recession. And economists see some mild, steady economywide inflation as a sign of a healthy economy. The Fed, for instance, actively targets an average overall inflation level of 2 percent per year.
For now, inflation is well contained and the Fed should monitor it closely, but not act rashly. Cheaper furniture, fast food, used cars and airfares would be nice, but they aren’t worth cutting the economic recovery short."
https://www.nytimes.com/interactive/2021/08/18/opinion/inflation-economy-transitory.html
Facts have a well known liberal bias
- By wat0n
- By Godstud