I think the supply chain discourse serves in part to obscure the reality that we have seen a huge surge in demand for goods.

That's a big part of the reason why the supply chains are stressed, it's not all exogenous shocks.
This is why I think promising that inflation will rapidly fall to two percent is a counterproductive mistake — of course companies will be reluctant to make the investments needed to meet this higher level of demand if you tell them it will go away soon.
The Fed should say they're raising the target to four percent.

We're a little below that now at Core PCE and a little above in headline PCE, so they will tighten policy as appropriate to prevent inflation from rising further but will not try to push it down.
The alternative is to say that because services expenditure is still depressed, as the pandemic fades people will rotate back into services and goods consumption will fall back to trend level.

That could happen, but making it our strategy depresses investment.

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More from @mattyglesias

14 Oct
Jeff Bezos' own newspaper featured the strange allegation that Amazon arriving in a town leads to lower wages in town.

I went looking for evidence of this and could't find any.

slowboring.com/p/amazon-wages
What we know is that in exchange for arduous working conditions, Amazon offers entry-level pay that is pretty high for blue collar work that doesn't require previous experience.

slowboring.com/p/amazon-wages
Amazon's corporate wage-setting norms seem to pull wages up across the board in communities where they are present.

slowboring.com/p/amazon-wages
Read 5 tweets
12 Oct
On the internet we have a lot of pointless posturing between people who are pro or anti nuclear as an identity affiliation rather than a policy argument.

I wanted to look at what the actual policy choices are.

slowboring.com/p/the-nuclear-…
Existing regulations for nuclear prescribe that you build it in a certain way, and that way is super expensive.

Engineers are excited about new tractor technologies they say are cheaper but prescriptive rules means you can’t do new stuff.

slowboring.com/p/the-nuclear-…
Congress passed a bipartisan law a few years ago directing the Nuclear Regulatory Commission to change this and develop technology-agnostic rules.

That’s a good idea, problem solved and now we can see if the nuke enthusiasts are full of shit or not.

slowboring.com/p/the-nuclear-…
Read 4 tweets

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