[Joseph E. Stiglitz] A victory lap for the transitory inflation team
ViewpointsNov 21, 2023
As the world was recovering from the pandemic, inflation shot up, owing to widespread disruptions to global supply chains and sudden changes in patterns of demand. While the demand shifts might have posed a challenge to price stability even in the best of times, the breakdown in supply chains made matters worse. The market could not respond immediately to the new demand patterns, so prices increased. Recall that we initially experienced a car shortage, simply because there was a shortage of comp