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Are you sure about that? The current inflation rate for 2020 is 1.2%, which is almost half what's it been each of the last three years.
by edgyquant 6y ago
Are you sure about that? The current inflation rate for 2020 is 1.2%, which is almost half what's it been each of the last three years.
- bsimpson 6y agohttps://crystalbull.com/federal-reserve/quantitative-easing-effects-chart/ https://crystalbull.com/federal-reserve/quantitative-easing-...
- edgyquant 6y agoThank you for this!
- y04nn 6y agoProbably referring to the money supply M0, 3.32 in Nov 19 and 4.92 in Oct 2020. Prices have not inflated, but there is more money in circulation.
- secabeen 6y agoThe underlying idea here is that the velocity of money has dropped significantly; each dollar is changing hands less often than usual, so you need more money in the system to facilitate the same amount of commerce.
- xur17 6y agoWhat happens when the velocity of money picks back up?
- Bombthecat 6y agoIt depends where. If the money flows from one stock to another :no inflation. If it trickles down (very unlikely) we get inflation.
- tylerhou 6y agoThe Fed sells the assets it bought back to the banks it bought them from.
- dannyw 6y agoBut very slowly, very carefully, and perhaps never at all. See: Taper tantrum.
- tempsy 6y agohe is referring to the m1 money supply.