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>1. We would need to print quadrillions of dollars to get hyperinflation. Is there actually a mathematical equation that proves this or is that your conjecture
by missedthecue 7y ago
>1. We would need to print quadrillions of dollars to get hyperinflation.
Is there actually a mathematical equation that proves this or is that your conjecture?
- wmeredith 7y agoI’d love to find out otherwise, but I don’t think so. Macro economics is social science, not mathematics.
- vkou 7y agoLook at the MZM, which is a good proxy for 'all the money in the economy'. [1] There's ~20 Trillion of it. Hyperinflation is, by definition, 50% monthly, ~600% annual inflation. The Fed has, so far in this crisis, printed ~2 Trillion that is staying in the economy (The rest goes into very short term liquidity). It's not a hyperinflationary scenario, even if they print another 2, or 4, or 6 trillion. If they printed 20 trillion, that would be another story. [1] https://fred.stlouisfed.org/series/MZM https://fred.stlouisfed.org/series/MZM