Thinking About Macro
The Memo by Howard Marks
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Prices of Goods Aren't Determined by Current Economic Developments
Prices of goods are influenced by economic participants psyches, and can easily overshoot or undershoot. Prices aren't just the result of supply and demand to day, but also an indication of what people think prices will be in the future. A given pool of extra dollars can't produce elevated spending forever. The ending of enhanced unemployment benefits in september should bring more workers into the job market, reducing the impact of labor shortages on wages....
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