Plain English with Derek Thompson Everybody Was Wrong About Inflation
Jan 14, 2022
Michael Batnick and Ben Carlson, both finance experts and co-hosts of the Animal Spirits podcast, dive deep into the recent surge in inflation rates, marking the highest in 40 years. They dissect how numerous analysts—including the Biden administration and the Federal Reserve—misjudged these economic shifts. The duo highlights 'meatflation' and critiques the blame on processors while unveiling complex factors driving food price hikes. Their engaging discussion also explores corporate pricing strategies and the psychological impacts of inflation on consumer behavior.
AI Snips
Chapters
Transcript
Episode notes
Widespread Inflation Miss
- Inflation hit 7%, the highest since 1982, impacting everyone.
- Many experts, including the government, Federal Reserve, and investors, misjudged its trajectory.
Broad-Based Inflation and Wages
- Current inflation is broad-based, affecting 90% of CPI subcomponents.
- Wage increases, while positive, lag behind inflation, impacting purchasing power.
Failed Inflation Predictions
- Various expert groups incorrectly predicted 2021 inflation.
- These groups include the "no inflation" team, "transitory" team, and Bitcoin proponents.