Hacker News new | ask | show | jobs
by collaborative 1889 days ago
This is a very insightful comment. I wonder if the production capacity has indeed remained intact or if it has actually been partially destroyed beyond repair. Some companies will have gone out of business. The products these companies sell will have experienced low demand during the pandemic, but their demand may rise when it's over. Will that trigger a sharp rise in prices? If all restaurants in my town closed except 1 and we all of a sudden want to dine out, I don't see how that remaining restaurant won't raise its prices when it gets flooded day after day. It's a simplistic example, but even restaurants can take months if not years to open (think licenses, contracts, hiring, training, etc). The last remaining restaurant from this simplistic example would have sustained high demand over a considerable period of time, enough to continually raise prices and not see a drop in demand
1 comments

Not only many business have closed, but the global supply chains are disorganized. I'm very surprised that we have not seen more inflation already and I think we will see some.

But that's not what this video is claiming, the video is talking about Zimbabwean style hyperinflation. That's not going to happen in the USA or the EU. Those are very powerful economies with a productive capacity like have never seen before in the history of humanity.

Actually, I think that even if in the short term we see some inflation in the Euro-zone, in the middle term we will see deflation and grow far below the USA because, as always, the masters of the Euro will refuse the needed fiscal stimulus.

Yeah the video is just an ad for a product trying to get peoples attention. I also expect to see inflation and have slightly increased my real estate debt accordingly