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There’s been a huge increase in the money supply around the world since the GFC and hardly any inflation. This should not be a surprise because monetarism alrea
by viburnum 7y ago
There’s been a huge increase in the money supply around the world since the GFC and hardly any inflation. This should not be a surprise because monetarism already failed as soon as it was tried 35 years ago. Simple models of the price level do not work. Output, trade, interest rates, investment, consumption, conflict between capital and labor, it all matters.
- hogFeast 7y agoThe point wasn't to cause inflation but to stop deflation. This is a mistake that people almost always make with economics: failing to understand the decision contemporaneously. By the metrics under which it was conceived, it had the intended effect (although some unfortunate side-effects...as ever).