A closer look
Inflation isn't just a monetary phenomenon; it’s a massive psychological hallucination that becomes real purely because people believe it is. The Federal Reserve obsessively monitors inflation expectation surveys because if consumers think prices will rise, they immediately demand higher wages and businesses preemptively raise prices. The entire trillion-dollar macro-economy hinges on the collective anxiety of average citizens polled by phone. The central bank literally has to manage public vibes, because in economics, widespread paranoia mathematically manifests as reality.
