Inflation Is Still Too Low

Inflation just hit 7%.  But in an important sense, that’s still too low.  Prices need to rise more – and the sooner, the better.

I know that sounds crazy, but hear me out.  I’m not saying that we need more monetary or fiscal stimulus.  Quite the opposite.  Aggregate Demand policy has been absurdly expansionary for over a year.

The reason why we need more inflation is simple: ubiquitous shortages.  This problem isn’t merely on the news; at this point, something I want to buy is unavailable prac...