Ones and Tooze Inflation: The Good, the Bad and the Ugly
Oct 21, 2021
Inflation rates are soaring, prompting a deep dive into its causes and effects. The discussion reveals intriguing insights about pasta consumption trends in Germany, highlighting the unexpected connection to the European economy. Transport logistics for pasta are also examined, showcasing innovative rail systems and the shift towards climate-friendly practices. The culinary journey of pasta reflects historical ties and evolving tastes, enriching European cuisine while addressing the environmental impact of food transport.
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Inflation Drivers
- Current inflation is driven by supply chain disruptions and increased demand.
- The pandemic significantly impacted both sides of the equation, causing disparities in price increases across sectors like food and energy.
Self-Sustaining Inflation
- Inflation becomes problematic when it's self-sustaining, like in the 1970s with cost-of-living adjustments.
- This created a feedback loop: price increases led to wage increases, further driving up prices.
Influencing the Fed
- Public figures arguing for persistent inflation might be attempting to influence the Fed's policy.
- This "working the refs" tactic aims to pressure the Fed into specific actions regarding inflation.