Apr 13, 2022Liked by Joseph Politano

"Service Prices Growth" is significantly affected by Transporation services such as airlines, Uber, subways and busses that are heavily affected by oil and fuel prices, though many people habitually equate services with labor costs. https://www.cato.org/blog/measurement-problems-service-prices-core-ppi-cpi-2

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Hi Joey, thanks for that great article as usual. I just have a question regarding the following sentence: "Since tightening monetary policy primarily constrains inflation by slowing the pace of service price growth". Do you have any studies evidence for that?

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Hi Efe! Sorry for the confusion, I should have linked something there. Here's a good post from Duncan Weldon on the topic and a primer from Employ America. Both these pieces link to more studies that should also help answer your question.



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