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by whimsicalism
1321 days ago
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The straightforward solution is that measurable surging consumer demand in durable goods allowed firms to set higher prices. Your theory around sticky prices doesn't explain firms running out of things despite keeping increasing inventory. Certainly, prices can be sticky and may be less sticky during the pandemic but firms still have to compete with each other on cost. |
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https://fred.stlouisfed.org/series/DGORDER