The chip shortage, shipping delays, and other supply constraints are starting to show up in the economic data. To the extent that these problems reflect the continuing impact of the pandemic, they should dissipate as vaccinations continue to accelerate. Other problems will be resolved only with some combination of lower demand and more investment in productive capacity—and the fastest way to generate those outcomes is through higher prices.
Start by looking at the motor vehicle sector, which has been hit hard by the shortage...
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