an interesting meditation on how sharply convex (think backwards L shaped) marginal cost curves can explain explain why “demand” sometimes seems to show up in final goods prices much more than wages, while at other times might show up in final goods prices almost mechanically through wages. by @jwmason http://jwmason.org/slackwire/what-does-it-mean-to-say-that-inflation-is-caused-by-demand/