Re:How this Ends
by rsp1984 on Thursday February 18, 2021 @08:10AM
(#26179385)
When demand shifts back, those industries will have significantly reduced capacity, and a lot of bargaining power to raise prices. The raised prices cascade through the economy, and that's what triggers inflation.
Not sure I buy that. Yes, there will be temporary upwards pressure on prices in some segments of the economy but also, following your argument, temporary downwards pressure on prices in other segments. So a) it's going to balance out and b) it'll be temporary. Not enough to trigger sustained inflation, not nearly enough to trigger hyperinflation.
Are we going to see higher inflation in this decade vs. the last? Absolutely. But hyperinflation is a different beast altogether and I'm quite skeptical we have the environment for it to come alive.
Not sure I buy that. Yes, there will be temporary upwards pressure on prices in some segments of the economy but also, following your argument, temporary downwards pressure on prices in other segments. So a) it's going to balance out and b) it'll be temporary. Not enough to trigger sustained inflation, not nearly enough to trigger hyperinflation.
Are we going to see higher inflation in this decade vs. the last? Absolutely. But hyperinflation is a different beast altogether and I'm quite skeptical we have the environment for it to come alive.