3 ms·

What? Is 25% change in total money a modest change?

• incrudible 6y ago
  In perspective, yes it is. In a normal year you might expect M2 increase by 5%. Last year was special, of course. People are acting as if hyperinflation was right around the corner because M1 just doubled, ignoring that M1 quadrupled in the ten years before 2020 and that it didn't cause hyperinflation then either.
  • tradertef 6y ago
    So, we just print 5x normal amount (which is also a big why) and it is all good.
    • incrudible 6y ago
      You can have a pandemic, or you can have liquidity crisis on top of a pandemic. Choose wisely.
      • tradertef 6y ago
        Is that so? People have lived through pandemics when they were using gold as a medium of exchange. The pandemic is an excuse for printing money. I would prefer that debasing of fiat would not exist, i.e. there is only limited supply which can not be inflated arbitrarily.