The Story of the Federal Reserve System Part 4: Inflation
Last weeks Friday Funnies looked at the balancing act that the Federal Reserve performs. This week’s comic examines the negative consequences of inflation.
I can barely remember the last time inflation was a real issue in the United States to be concerned about. I know that I would have a hard time adjusting to inflation if it suddenly went up, and I’m sure younger folks would have no experience responding to a substantial increase in inflation.
Most businesses that exist today did not exist during the high inflation periods of the 1970s and 1980s. While the demand shock of the pandemic has caused many businesses to learn to be more adaptive, I’m still not really sure it is similar enough to a sudden inflation increase.
Next week we’ll cover the tools that the Federal Reserve can use to address inflation. Feel free to share your thoughts and questions in the comments section below.