The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.

  • Grimpen
    2·
    1 year ago

    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?