3 ms·
The problem I have with this take is that you're looking at 2008 as a discrete event with a discrete recovery. Look at a chart of the national debt (which is wh
by nickysielicki 5y ago
The problem I have with this take is that you're looking at 2008 as a discrete event with a discrete recovery. Look at a chart of the national debt (which is what we have to monetize, which is the whole reason for inflation) and you'll see that we weren't able to reduce debt meaningfully at any point over the past 15 years.
If this is still the same event then all those people still could be right.
- duxup 5y agoI think I see what you're saying, but there's no real obvious end ... may not ever be if it is all one event. Most folks I think read these as predictions of pretty soon to come events... not "never mind we meant over the next 20 ... 50 ... 100 years". And at that point that's not 'right' IMO.
- alisonkisk 5y agoInflation happens when money grows more than economic activity. National debt is only one piece of that. Banks could also raise (private loan) interest rates, or be forced to maintain more reserves, leading to fewer loans.
- imtringued 5y agoInflation happens when demand exceed supply. Interest rates have to be raised when we run out of the ability to expand production capacity (primarily by hiring people) to catch up with demand. Having enough work to hire everyone is not a bad thing.