Good description of cost push vs. demand pull.

The other cause of energy inflation that was not mentioned is Biden's war on fossil fuels. The Wall Street Journal had an article today about the drastic fall in Federal land drilling -- to the lowest levels since 1945. With the falling levels of production in the US we will not see energy prices falling.

I don't know if you will cover it in Part 2... You have commented about the lack of wage growth in Japan -- don't you think that a wage growth spiral due to inflation could be a good thing for Japan? The Japanese workers are not used to rising wages. I think it could be a spark to the economy.

Expand full comment

I think a bit of wage-led inflation would be good for Japan, but labor's bargaining power has been terribly weak.

Expand full comment