I'm not asking if inflation currently exists - it definitely does - but I'm more curious to know if it actually is a big deal? Is it just a transitory thing or are there actual warning signs for larger issues?

Someone who is good at economics please explain

  • discountsocialism [none/use name]
    ·
    edit-2
    3 years ago

    The feds think it's transitory, meaning they think that it isn't a result from an ongoing policy so no change is being recommended. Current inflation is partially attributed to pandemic related shocks, supply bottlenecks and labor shortages. These issues are likely to resolve as time goes on. However we likely won't see much deflation.