Listening this morning to an economist from PIMCO on Bloomberg Radio. “We don’t talk about it much, but the dominant driver of inflation is expectations. He cites a lengthy Janet Yellen speech from 2015 or 2016, which, “after about 40 footnotes, basically concludes the same thing, that expectations drive inflation.”

So, is it possible that the internet has changed the mechanism for inflation expectations? Everyone gets price information from everywhere, instantaneously.