- Jun 23, 2019
- 17,056
- 14,821
- Thread starter
- #281
By the way for an historic analogy the current increase in the rate inflation is much more analogous to that of 1946 than it is to the inflation of the '70s. During World War II virtually no consumer durables were manufactured. When the war ended there was huge pent up demand and very few goods (see graph below).
Somewhat similar situation now, shortage of goods as the result of the reopening of the economy amplified by the "just in time" method of inventory managementmaking it extremely difficult to cope witha sudden large increase in demand. The inflation rate should drop although probably not to the level prior to the pandemic once supply and demand are more in equilibrium. Already happened with lumber prices.
Somewhat similar situation now, shortage of goods as the result of the reopening of the economy amplified by the "just in time" method of inventory managementmaking it extremely difficult to cope witha sudden large increase in demand. The inflation rate should drop although probably not to the level prior to the pandemic once supply and demand are more in equilibrium. Already happened with lumber prices.