Jim Zheng Posts About Now Photos

Bridgewater just published an article on the state of inflation. The article can read a bit dense, so here are notes you can read in 3min.



🏔 Landscape

📈 More about MP3

Story for demand

Story for supply

Next wave of inflationary pressures

  1. Consumer good demand goes down
  2. Increase spending on labor-intensive services
  3. Ongoing shortage of labor will worsen
  4. Inflation will become increasingly self-reinforcing

For supply and demand to clear at levels that don’t lead to sustained price increases, ther would need to be a massive investment in productivity for supply to catch up. The gap between demand and supply is now large enough that high inflation is likely to be reasonably sustained


Discuss on Twitter