Very thought provoking analysis. But the idea that inflation is here to stay is a bit naive. It underestimates the power of the Fed. The Fed is the most important actor in the financial markets in the whole world. And it has a legal mandate to tame inflation. If Jerome Powell does not fulfill the mandate, he can in principle be impeached. If he does, and the economy is going into a recession, nobody can accuse him of anything. Economic growth is not one of the Fed's explicit, or even implicit mandates.