Taming the beast that's inflation

Taming inflation means dampening spending when many households are sitting on gargantuan wealth gains. (Image: Adobe Stock)

Cameron Bagrie

Mon, 29 Nov 2021

Inflation is here. The thief that steals savings and reduces spending power.One derivative that has me thinking is the wealth effect, and how long it could persist, putting continued pressure on inflation. Taming inflation means dampening spending when many households are sitting on gargantuan wealth gains that are likely to support spending for some time – if the goods are available! If the goods are not, it just becomes pent-up demand, or demand is substituted. The overseas holiday or replacement car you cannot source becomes...

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