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 […]
-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.
So this detail in the article is bullshit?
And what about technological advancement?