Inflation is differential and restructuring (2021)
Wow, this was the article I was looking for, it summarizes a number of thoughts about economics that I&#x27;d been having since the undergraduate days:<p>- There&#x27;s an authority about the field that really isn&#x27;t deserved. The models are not made properly, and there&#x27;s a lot of hand-waiving. I studied economics with a class of engineers and everyone pointed this out.<p>- The pop-sci version of economics is a bunch of easy quips. Friedman&#x27;s &quot;everywhere a monetary phenomenon&quot;, Keynes &quot;In the long run&quot;.<p>- The econ 101 version of economics is dominant in popular thought. You see it everywhere in newspapers. A more nuanced version of economics does exist, but the appeal to authority is strong in the field, because there&#x27;s no real reasonable arguments, it&#x27;s actually politics.<p>- Inflation is more interesting in a disaggregated view, for reasons mentioned. You can&#x27;t look at it as a single figure.<p>- Relative price changes are what matter in society, because they represent changes in negotiation terms between different actors. Post-pandemic and Ukraine, we should expect to see more shortages as well as more strike action. Various groups like the RMT union will decide they need to flex their muscles. Chip shortages will cause negotiation positions to change across a wide variety of affected sectors like cars, meaning push will come to shove for certain lines of business.