Milton Friedman famously declared that inflation is “always and everywhere a monetary phenomenon”. While it’s hard to
disagree with a legendary economist, monetary economics don’t quite capture real life and how we’re feeling today.
Inflation hurts all of us, and it can profoundly influence our expectations and behaviors. For many, inflation brings back
1970s-era memories of long lines at gas stations and ballooning mortgage rates. If inflation persists for too long, it can
spur people to make panic or bulk purchases which can drive prices even higher. We haven’t seen this scenario play out
yet because the US economy is slowing and reducing demand.
On The Mark: Will Higher Inflation Last Forever?
July 25, 2022