co-blogger David Henderson made a helpful mention. Publication of an interesting book edited by Ryan Bourne, price war. The authors, whom I am honored to include, include Brian Albrecht, Pedro Aldighieri, Nicholas Anthony, David Beckworth, Ryan Bourne, Eamonn Butler, Vanessa Brown Calder, Michael Cannon, Also included are Jeffrey Clemens, Brian Cutsinger, Alex Edmunds and Peter Jaworski. , Deirdre McCloskey, Jeffrey Miron, Liya Paragashvili, Joseph Sabia, JR Shackleton, Peter Van Doren, Stan Vooger. This book provides an extensive review of the essential role of price. (By starting and coordinating this effort, Ryan accomplished his amazing feat.)
My own article titled “Increasing Product Prices Doesn’t Cause Inflation” (pages 19-27) focuses on the crucial difference between relative prices and inflation. Some excerpts:
We need to clearly distinguish between two different phenomena.
changes in prices and general price levels;Relative price is the price of one item relative to the price.
another.Inflation is an increase in the price of all goods in monetary terms.
The general price level (and therefore the inflation rate) is not itself technically observable and must be estimated, usually through a weighted average of observed individual prices, such as the CPI. However, you need to be aware of the differences between what you are trying to measure and the calculated estimate.
When inflation is present, the change in a given price includes both the relative change (without inflation) and the effect of inflation.
If observed prices, such as the price of roast beef or gasoline, result from both relative price changes and inflation, then observed prices cannot cause inflation.
The CPI and similar indexes can be a useful indicator and warning of inflation, but only if you are aware of their inherent limitations.
It is important to realize that inflation is a monetary phenomenon and has nothing to do with inflation. supply chain fetish. Misleading narratives about supply chains give central governments an excuse to inflate the money supply to fund self-serving interventions.
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Supply chain fetish by DALL-E and PL
