Navigating Inflation and Consumer Behavior

This chapter explores the complexities of inflation trends post-pandemic, highlighting how rapid demand surpasses supply, resulting in significant price hikes across various goods. The discussion emphasizes a shift in consumer behavior, with spending patterns moving away from services towards durable goods, and reflects on the psychological impacts of these trends. Additionally, the chapter considers the ongoing labor shortages and the implications of 'boomflation,' contrasting the current situation with past economic models.