> The reason we aren't, at least for now, likely to see serious inflation due to the recent increase in money supply is because most of it entered the economy through the Fed's bond buying program.
In what fairy-tale world do you live in where we are not experiencing inflation? Seriously, do I actually need to justify the fact that we are experiencing inflation as a result of money printing in a world where Biden just explained that his $3.5 Trillion dollar stimulus bill is actually going to be FREE since $3.5 Trillion = $0 in politician math?
I highly doubt that 100% of the significant increase in prices over the past year was due to supply chain issues and 0% can be attributed to the exponential increase in money supply.
Also, to the sister comment arguing that it’s all due to an increase in the size of the population, has the population increase 40% in the past year? As we begin to open up the economy the velocity of money is increasing and inflation is the natural result.
It's not that complicated. If money supply is causing the price inflation, then we should be seeing higher than usual demand. For most things, that doesn't appear to be the case. Demand may be slightly up, but supply constraints are the real issues. No one said 0% was attributable to money supply. But it is likely a small factor since, as I explained, most of that money is not even circulating.
In what fairy-tale world do you live in where we are not experiencing inflation? Seriously, do I actually need to justify the fact that we are experiencing inflation as a result of money printing in a world where Biden just explained that his $3.5 Trillion dollar stimulus bill is actually going to be FREE since $3.5 Trillion = $0 in politician math?
I highly doubt that 100% of the significant increase in prices over the past year was due to supply chain issues and 0% can be attributed to the exponential increase in money supply.
Also, to the sister comment arguing that it’s all due to an increase in the size of the population, has the population increase 40% in the past year? As we begin to open up the economy the velocity of money is increasing and inflation is the natural result.