Part 6/17:
Supply chain problems, such as semiconductor shortages and bottlenecks in shipping, are also contributing to temporary price increases. Lynn emphasizes that these issues are often localized and resolveable over time, with some industries, like lumber, being particularly susceptible due to timing mismatches in raw material processing.
The Role of Fiscal Stimulus and Long-term Inflation Risks
Lynn highlights the impact of fiscal stimulus measures, like stimulus checks and enhanced unemployment benefits, in supporting demand even during the pandemic. This influx of money has contributed to rising asset prices across stocks, cryptocurrencies, and real estate, but he underscores that some of these surges are fueled by short-term stimulus effects rather than fundamental demand.