Isn’t this what we’re seeing? Semiconductors strained leading to rising auto prices? (For example.)
What evidence is there that it will radiate outwards at a rate significantly above the Fed’s target for an extended period of time?
What evidence is there that it will radiate outwards at a rate significantly above the Fed’s target for an extended period of time?
Offhand however, the top capital constrained industries that I can think of (in rough order) include.
1. Semi 2. Housing 3. Automotive/heavy manufacturing 4. Energy
Which are all experiencing shortages/rapid price increases. If the hypothesis holds we would see price increases in other fields which depend on the above. If the supply disruption/demand disruption hypothesis holds then we should see a normalization of prices in the above industries.
A single advancement in worker automation could easily provide enough productivity gains to offset wage growth. A single plant disease or new political treaty could massively effect food and or energy costs. The system is chaotic.