Focusing on the price of core goods, the black line in the chart, you can see how goods prices started climbing in the second half of 2020 and rose sharply in 2021 as the pandemic-driven disruptions to social interactions induced a rapid shift in demand from services to goods, exacerbating snags in global supply chains.
6 Economists at the time were well aware of the importance of the disintermediation phenomenon for monetary policy. Frank de Leeuw and Edward Gramlich highlighted this particular channel in their description of an early version of the MPS macroeconometric model, a joint product of researchers at the Federal Reserve, MIT, and the University of Pennsylvania (de Leeuw and Gramlich, 1969).