Notes on inflation

When economic yield is well balanced we would see the yield curve shped for maximum economies of scale. As longas the shape is maintained, prices must be in equilibrium, whether we are i a finite or infinite set of equilibrium points.

So, to look for inflation, we look for distortions in the yield curve, and we are generally stuck with relative inflation between goods, including money. Here is a reference on relative inflation. Hence we can only measure inventory shortages along the chain of production represented by distortions i the yield curve. What we call CPI inflation would have to be higher short term interest rates than a properly adjusted yield curve should have.