pull down to refresh

0 sats \ 2 replies \ @TomK OP 29 Feb \ parent \ on: Red Sea Tensions: Eurozone Inflation on the Radar econ
In the short term, supply-side destructions can very well have an inflationary effect. After that, the economy can adjust if it has a free market.
write
preview
21 sats \ 1 reply \ @premitive1 29 Feb
It seems to me you're conflating supply curve shift to the left with price inflation, which is a phenomena of increased money supply.
reply
229 sats \ 0 replies \ @TomK OP 29 Feb
I know. You're right. It's a supply shock (S to the left) in the isolated sector. Inflation refers to MS. Correct
reply