Inflation Is Down. It’s a Supply-Side Story.
September 8, 2023
Supply-Side Expansion Has Driven the Decline in Inflation
With the steep deceleration of inflation in the first half of 2023, the fears of a sustained, 1970s-esque scenario are now behind us.
And the primary reason for that disinflation is an expansion of supply, Roosevelt’s Mike Konczal explains in a new brief.
“[A]t the moment, the inflation story is exactly what a ‘soft landing’ would have predicted,” Konczal writes.
“A combination of resolving supply shocks and a subtle decrease in demand has driven inflation down dramatically, with no cost to the level of employment.”
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What We’re Talking About
Public support for labor unions at 60-year high + 40-year high of workers on strike = #LaborRenaissance
Policymakers must step up for workers or step aside. https://t.co/qB4pMoOChX— Alí R. Bustamante, Ph.D. (@DrAliBustamante) September 4, 2023
What We’re Reading
Inflation Is Falling. Don’t Thank the Fed. [by Roosevelt Senior Fellow J.W. Mason] – Barron’s
Saule Omarova’s Plan to Remake the Financial System – Dissent
The Gap between Men and Women in the Workplace Is at a Record Low – Axios
Presidential Centers Ring the Alarm on the State of Our Democracy – MSNBC