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Future-proofing: How we fix broken supply chains
GZERO World with Ian Bremmer
What's the Relationship Between Current Inflation and Supply Issues?
Inflation is caused by exogenous factors, such as war or a pandemic. The only tool that the federal reserve and central banks have to bring inflation down is to reduce over all economic demand. That brings down aggregate demand, but it doesn't cause oil shortages or shortages of wheat to go away. So we have a situation now where the tools to manage inflation and the nature of the inflation itself are mismatched. And that's what's putting the global economy in jeopardy right the second.
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