Prices are busting out all over the world. Prices charged by US producers are 20% higher than they were a year before. Consumer prices were up by a mere 5% in August. That is before the recent tripling of natural gas prices.
The cause of higher prices seems clear enough. They are a response to buoyant demand stimulated by Covid-inspired extra government spending, and central bank funding of far larger fiscal deficits, which has dramatically increased the supply of money, specifically bank deposits held by households and firms...
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