Austin Vernon on inflation – Marginal REVOLUTION
I think you have tangentially mentioned this before, but might it be that we are worse at measuring inflation/quality in services than goods? So maybe there has been 3-4% inflation post 2008 instead of 1-2% but it isn’t measured because it comes in the form of decreased service quality. Service list prices might be sticky. And now we see the inflation more clearly because the fiscal stimulus is larger and consumption shifted into goods from services.
From my email. I am not so sure about post-2008, but the point may hold real relevance for today.
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