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The money supply has certainly jumped: https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL We can debate whether the increase in mo

• imtringued 5y ago
  A huge chunk of it is QE and everyone knows QE is a meaningless operation. Here is a simplified example. Banks grant $4 trillion in credit (mortgages and other loans). They also create bonds worth $4 trillion. The central bank does QE and buys $4 trillion of bonds. This entire process injected $4 trillion into the economy through loans but it increased the supply of credit by $8 trillion. Of course from the perspective of the bank its better to mix the urine in a huge pool...
• mywittyname 5y ago
  It's disingenuous because there's so much evidence that QE doesn't impact consumer prices. The money supply has been increasing like mad for a decade now, and in that time consumer prices have both crashed and exploded at various times. It's also disingenuous because there are so many reports of shortages across tons of sectors. Which is the most obvious and immediate cause of price increases. Demand is staying the same or increasing while supply has plummeted. Prices are going to spike in that situation regardless of QE or other money supply increases. We aren't even insulated from this. There are bidding wars for everything now. Lots of people here have direct experience with difficulty sourcing components and customers who are willing to pay crazy prices for what limited capacity their companies have.