The Collapse of Economic Orthodoxy: Why Textbook Theories Fail to Explain Inflation Today

By Dorian | Ztrader Macro

Published: June 26, 2025 | Taiwan

Introduction: Textbook Tools, Real-World Failures

In the classroom, inflation is simple.

• Too much money causes prices to rise.

• Low unemployment fuels wage inflation.

• Central banks raise rates to suppress demand.

• The CPI is the barometer of cost-of-living pressure.

But reality, especially in 2025 Japan,…