Unexplainable cover image

We still don’t really know how inflation works

Unexplainable

NOTE

Real World Solutions Over Wizardry of Feds communication

The public's negative perceptions of the US economy, including beliefs of recession, decreased stock prices, and high unemployment rates, are debunked by the reality of economic growth, high stock values, and low unemployment rates post-COVID. Economists attribute these positive trends to the Fed for managing inflation expectations. However, another perspective suggests that the economy's improvement was due to the collective emergence from the pandemic, addressing supply chain issues. As the economy rebooted post-pandemic, the supply chain resurrection led to decreased inflation, contrary to the belief that Fed's communication was the primary driver of economic stability and growth. The real-world solution, focusing on restoring the supply chain rather than relying solely on the Fed's actions, played a crucial role in stabilizing the economy, indicating a practical approach over the perceived wizardry of the Fed's communication efforts.

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