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Whether this pressure is sustained depends upon monetary policy and on the beliefs of wage- and price-setters — neither of which are easy to predict. The full piece can be found here: fathom-consulting.com/researc…
But, inflation could rise further than they expect if excess savings are spent more quickly than anticipated. pic.twitter.com/xk0mCWZe19
Last year actual and potential output shifted down in parallel — investors eventually realised this and corrected their initial error. pic.twitter.com/blaukK8tH5
We discussed the concept of the output gap and why it remains a useful, if challenging concept. pic.twitter.com/lZmNEpUSVA
The second piece in our #inflation trilogy is due to be released later this week. Ahead of that, we look back on the key points from our first.
Whether this pressure is sustained depends upon monetary policy and on the beliefs of wage- and price-setters — neither of which are easy to predict. The full piece can be found here: fathom-consulting.com/researc…