EN United States Institutional
Macroeconomic & Geopolitical

Inflation, Expectations & Listening to Your Parrot

24 May 2021 - 3 min read

“Catch a parrot,” goes the old adage, “teach him to say ‘supply and demand’ and you have an excellent economist.”

When it comes to tracking inflation, however, most economists would actually teach their parrots how to say "demand and expectations." That's because persistent inflation is driven by two main factors, excess demand and expectations of future inflation.

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