Quote:
Originally Posted by blankall
Supply chain issues are expected to persist for at least another year. Unless that's dealt with, there's no way to deal with inflation.
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Of course there is, demand just has to match supply for things with elasticity in demand. If the supply of new cars is 10% below equilibrium, but then demand drops by 15% due to monetary policy and economic conditions, then supply is no longer an issue.
And this is showing up in the data. Container shipping prices from Asia to the west coast of North America have now dropped by 85% in the last year (and about 80% in the last 4 months) because demand for goods has been dropping as inventories build up.