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>>"The third thing to know is that if central banks go crazy increasing the money supply, the result will be high price inflation. There is one exception to thi
by RobertoG 6y ago
>>"The third thing to know is that if central banks go crazy increasing the money supply, the result will be high price inflation. There is one exception to this, which was evident in 2008 and 2009 [..]"
Japan has been doing that for decades now, and none of the mainstream macroeconomics prediction came true.
>>"If central banks simultaneously act to decrease the velocity of money — that is, if they take measures to reduce borrowing and lending — then price inflation will be limited accordingly."
What are those measures he is talking about?
- rufusroflpunch 6y agoThat’s because we measure inflation stupidly, IMO. If there would otherwise be, say 6% price decrease, but central bankers inflate the supply of money to 1% price increase, then they say we had 1% inflation when in reality there was 7% inflation.