Inflation Is Killing the Recovery

Source: Ludwig von Mises Institute
by Daniel Lacalle

“Last week, Ned Davis Research published a note titled ‘Turns Out, Growth Looks like It Was Transitory — Inflation Is More Sticky.’ There are many factors that show us that consumers and salaries are being eaten away by inflation, leading to an abrupt halt in the recovery. Autos and new home sales plunged, real disposable personal income has plummeted, and real median wage growth is lower than inflation. Policymakers have pushed inflation at any cost with the most aggressive monetary policy in decades and it took a normal recovery after the reopening to prove why inflation is always a monetary phenomenon: in 2020 G7 central banks increased money supply well above demand and faster than ever since 2009. This led to massive inflation spikes in essential goods and services.” (09/27/21)

https://mises.org/wire/inflation-killing-recovery