I'd add to the supply and demand part, that technically, supply and demand are always balanced. Thus, the New Keynesian model is helpful as it related the rate of inflation with the level of real marginal cost Higher level of real marginal cost causes higher inflation (if people demand more of a product, it becomes costlier for a firm to supply it and thus the real marginal cost goes up, pushing up the rate of inflation).
Yep - perfect. Loved the comment nominal news. Demand drives more supply, which inevitably means higher marginal cost suppliers need to enter the market, which increases inflation ! Perfect
While I have few criticisms -- yours is didactic for a different group of people than I am writing for -- I naturally prefer my own explanations and opinions found at:
Wages and Prices - by Thomas L. Hutcheson (substack.com)
Happy to see more economics substacks!
I'd add to the supply and demand part, that technically, supply and demand are always balanced. Thus, the New Keynesian model is helpful as it related the rate of inflation with the level of real marginal cost Higher level of real marginal cost causes higher inflation (if people demand more of a product, it becomes costlier for a firm to supply it and thus the real marginal cost goes up, pushing up the rate of inflation).
Yep - perfect. Loved the comment nominal news. Demand drives more supply, which inevitably means higher marginal cost suppliers need to enter the market, which increases inflation ! Perfect
While I have few criticisms -- yours is didactic for a different group of people than I am writing for -- I naturally prefer my own explanations and opinions found at:
Wages and Prices - by Thomas L. Hutcheson (substack.com)
https://thomaslhutcheson.substack.com/p/improvements-in-macroeconomic-data
https://thomaslhutcheson.substack.com/p/framework-for-monetary-policy-2
https://thomaslhutcheson.substack.com/p/framework-for-monetary-policy-1
https://thomaslhutcheson.substack.com/p/arrrrr
https://thomaslhutcheson.substack.com/p/the-lessons-of-pandemic-inflation
https://thomaslhutcheson.substack.com/p/fighting-over-fait
https://thomaslhutcheson.substack.com/p/inflation-targeting-again
https://thomaslhutcheson.substack.com/p/the-rise-and-fall-of-the-phillips
Thank you Thomas !!! Deeply appreciate your comment and response - oh come on, you gave me homework :-) with this list of articles