Inflation Predictions by Steve Keen

Steve Keen discusses the inevitability of inflation, suggesting that while it is coming, it will not result in the hyperinflation some fear. He emphasizes that the potential inflationary pressures are largely driven by supply-side disruptions stemming from COVID-19 and other factors, rather than excessive demand. Keen argues that the current economic environment lacks the strong credit-financed demand that characterized previous inflationary periods, thus limiting the ability of inflation to escalate. He believes that any price increases resulting from supply shocks will not lead to a sustained inflationary spiral due to weakened labor bargaining power and high private debt levels.