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Inflation Fears, Bullshit Costs, And Inappropriate Policy


Friday, 16 July 2021, 1:12 pm
It is true that New Zealand – and the rest of the world
– now faces substantial inflation pressure. As the 2020s
unfold, the biggest macroeconomic story – as in the 1920s
after World War 1 – is likely to be about how we address
these pressures in a context of even the experts having
little understanding of the contemporary manifestation of
the problem, or of how to address it.
Modern
capitalism faces a new cost structure that has evolved
since the 1970s; and it faces supply complexities that are
chaotically unravelling in the wake of the Covid19
pandemic.
The cost structure that has arisen mainly ....

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