this post was submitted on 14 Jun 2023
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-Periods of technological stagnation, societal dysfunction, the need for resiliency over efficiency, war, and scarce natural resources tend to all contribute to the experience of inflation due to their negative affects on the supply of goods and services. On the other hand, periods of technological improvements, labor specialization, the sacrifice of resiliency for efficiency, geopolitical and civic peace, and abundant natural resources tend to all contribute to the experience of disinflation due to their positive affects on the supply of goods and servicesWeird. Wasn't the technical advancement of the 60s/70s higher than in the last 20 years (2000-2020)? Although back then inflation was much higher than now?
Remember the 70s had oil embargoes. Cost of almost anything is linked to petroleum. Interest rates got very high before it was over. Yes I was there.
The article makes the point, that 70s and current high inflation have different causes. In particular US debt is much higher today, so that higher rates could eventually contribute to inflation.