(adj)-Not permanent, easy to disappear on its own

Since the global financial crisis, commentators and observers have been constantly predicting that inflation will take off, but they are often considered weird. But regardless of luck or good judgment, they achieved their goals in 2021.

When economists supporting the Democratic Party began to warn only a few months after Joe Biden came to power that the new president’s stimulus plan exceeded the economy’s capacity without worrying about inflationary pressures, the situation was completely different. .

This fire of friendship-from celebrities such as Lawrence Summers and former U.S. Treasury Secretary and IMF chief economist Olivier Blanchard-was initially rejected by most Biden supporters. But during 2021, more and more Team Transitory members admit that inflationary pressures are stronger than they thought. In the United States and many other countries, inflation is now at its highest level in decades.

Federal Reserve Chairman Jay Powell popularized the argument that inflation is “temporary” because it is driven by factors that may weaken on its own, such as supply chain bottlenecks associated with the pandemic, sharp increases in energy prices, and huge consumption from services to goods. Transformation. However, his critics worry that as wages respond to inflation, the wage price spiral may permanently increase price growth.

As inflation continues to accelerate, “temporary” has begun to become an embarrassment.Powell insisted that the word he used never meant “transient,” but ultimately decided Cancel this phraseHowever, he and other major central banks insisted on their analysis-if not for the term-and expected inflation to fall in the second half of 2022.

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