Supply and Demand and Inflation

Inflation has two fundamental sources. The first is that you have the economics of supply and demand. There is a second aspect of it, which is human emotions and human behavior. And their perceptions can also carry inflation independent of these current dynamics in the economy. In other words, i think what you see right now is not necessarily driven by the demand side. But also what we have to consider is the ability that that economy must produce.

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