Is There Anything Magic About Two?

Inflation, normally, is a very slow phenomenon. It takes quite a while forn on to dissipate. The current episode is really unusual in the sense that it's really only during the corean war and the oil crisis of the seventies that we ever had these inflations coming on so fast. And that's how you know whether it's demand or supply side. If it's demand side, it's going to happen very slowly. if it's supply side, you see the spiced,. De: What's really costly about inflation is volatility. So that your price expectations are never really quite rit because the higher the average inflation, the greater the volatility around that average.