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I apologize, but this reveals fundamental misunderstandings of how inflation is measured, and what it measures, and of how US dollars enter the economy. Look a
by jonnycomputer 5y ago
I apologize, but this reveals fundamental misunderstandings of how inflation is measured, and what it measures, and of how US dollars enter the economy.
Look at this post to see how many different measures of inflation there are. Each of these get at different aspects of the economy:
https://econbrowser.com/archives/2021/08/measured-inflation-in-july https://econbrowser.com/archives/2021/08/measured-inflation-...
https://econbrowser.com/archives/2021/09/inflation-a-comprehensive-global-database-1970-2021 https://econbrowser.com/archives/2021/09/inflation-a-compreh...
As for money printing. Per US law, money cannot be just printed by the Treasury. It must be borrowed from people who already had dollars to lend.
New dollars enter the economy when banks lend money; that is the main engine of new money creation, and it is responsive to the economy. Usually, banks don't lend when its too risky, and businesses don't borrow when it won't lead to profitable growth.