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Seth Ackerman's avatar

yup np

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Alex M's avatar

One of the better summaries of inflation and the different schools of thought I’ve read, so thank you. I disagree with the comments on transitory though, and I don’t think you can say summers is wrong in his use of this word. I feel like transitory is getting a dose of revisionist history. Transitory inflation in 2021 was the notion that inflation would self moderate without the need for a policy response. After QT and a 500 bps give or take policy response, a significant decline in inflation can’t be transitory using the 2021 swing iron, given it’s clearly somewhat impacted by the policy response. The counter factual of what inflation would be today if fed was still on hold is unknowable, but is comfortable wager it wouldn’t be trending down like it is now, it would be flat or moving higher.

Thank you!

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