Published: June 2023 In prior articles and newsletters, I’ve explored the causes of consumer price inflation over time. In short, the rate of consumer price inflation in an economy comes from a combination of 1) money supply growth and 2) significant changes in productivity and/or resource abundance. -Periods of fast bank lending or large monetized […]
So this detail in the article is bullshit?
And what about technological advancement?
Technology. I guess it depends on how competitive the market is. Monopolies are bad for price and most tech is patent protected.
In this last round of inflation we had high oil and other resource prices plus labor shortages and dislocations. Add on a lot of pent up demand and also not a lot of competition. None of this is very good for prices. On the other hand now inflation is under 2% in some locations though the national average is higher.