The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.
The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.
I think if you extrapolated from 2019 with a 2% inflation rate extended to 2025 or 2026, and managed to intersect with that, it would be kind of good, but I don’t know if you can without some harm somewhere. You have a very real disruption in the pandemic, followed by a large land war in Europe.
However you cut it, there is some pain to be spread around. It just seems that the Billionaires won’t be feeling any of it.
Still, a “soft landing” still might be kind of do-able, I wouldn’t be adverse to a few years of 1% inflation in the CPI with 2% pay raises. But macroeconomics is hard at the best of times. Hey, how about those housing costs?