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The graph looked like that in 2009 too, and yet inflation stayed around the 2% target.
by OscarCunningham 6y ago
The graph looked like that in 2009 too, and yet inflation stayed around the 2% target.
- irjustin 6y agohttps://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1 I wouldn't say it looked similar... The time scales are different for the same _relative_ amount printed. 2009 took longer to play out. We're not even 1 year in.
- OscarCunningham 6y agoYeah, you're right. A good way to compare the relative increases is to go to 'Edit Graph' and set a log scale in the 'Format' tab. That makes it clear the relative change in 2020 was huge. I'm still not sure it will cause inflation though, since COVID has had a big deflationary impact and the Fed can always unwind if needed.
- the-dude 6y agoReal estate and stock market.
- unreal37 6y agoYeah, we're seeing inflation in "financial assets". Just not yet in a basket of groceries.