How to Tell if Inflation Is a Sticky Price Signal

Inflation distorts price signals so you don't really know what the truth is. Central banks had taken credit for a long stretch of low and stable inflation they called it the great moderation. The incorporation of Chinese and Indian workers into the global labor market over the past 20 or 30 years helping to keep a lid on prices. There was a lot of new money created during the pandemic that has left people with excess savings, high ability to spend.