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.
Felix and Mihir discuss the turmoil in financial markets and how best to respond as an investor or a corporate executive. Is it time to panic? What is the longer-term outlook for the economy? Will the Federal Reserve be able to tame inflation without causing a recession? They also discuss the fate of Upstart, an AI-supported lending platform. The former Wall Street darling lost much of its value, seemingly overnight. Can Upstart recover? Are we really better off with more consumer credit?