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The Underlying Roots of Inflation

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This week's Economic Perspective covers economic inflation and its underlying roots
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The long-term outlook for inflation will be more problematic than previously assumed. A sustained trend of elevated inflation is a result of a structural imbalance between aggregate supply and demand. A sustained excess of demand versus supply is the result of several powerful structural forces, including unprecedented government stimulus in response to the pandemic; a chronic shortage of workers relative to the demand for labor; and a long-term trend of increasing industry concentration that enhances business pricing power... READ MORE

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May 10, 2023
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