Why inflation will soon be over

Here’s a quick test: do you feel, in your bones, that we’ve entered into a new inflationary era or is this just a blip?

If you feel we’ve entered into a new inflationary era, you are an economic conservative. You may believe in secular inflation thanks to the following: Brexit, trade wars, de-globalisation, Covid and Ukraine, which have all created shortages in manufacturing, oil, and wheat that we are powerless to fix. Perhaps you believe that sinister world leaders, business interests, and cartels control the markets in all this stuff and have decided to restrict it. Or you may think that central banks have been printing money so recklessly, and for so long, that finally there is too much money versus stuff.

If you feel the current inflation is just a blip, you’re an economic progressive. You may believe inflation is temporary because of the following: innovation is a constant of human progress, a benign deflationary force that continually reduces the cost of living for everybody.