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> The causes of inflation are fairly straightforward. It's a shortage of labor, international supply chain issues, and an unbalanced labor market due to a deman
by TacticalCoder 5y ago
> The causes of inflation are fairly straightforward. It's a shortage of labor, international supply chain issues, and an unbalanced labor market due to a demand profile that changed rapidly over the pandemic (essentially a huge shift to goods over services).
So the trillions printed out of thin air have nothing to do with the inflation currently experienced?
- disgruntledphd2 5y agoWe've been printing like crazy people for at least the last ten years. Why haven't we see inflation before this? I do agree that asset price inflation has been a real thing, but if it's just money printing, then why didn't we see broad based inflation from 2008 onwards? (Serious question).
- neilwilson 5y agoThe asset prices aren't inflating. They are returning to their true market determined level. Interest rate setting is an artificial market intervention that suppresses market prices by giving people a 'free money' alternative paid for by taxpayers. As long as you are a bank of course.
- AlgorithmicTime 5y agoThe money wasn't moving into the consumer economy, it was going into the stock market and assets.
- medvezhenok 5y agoSupply chain problems because of virus & fiscal stimulus (as opposed to monetary). Monetary can't cause inflation since velocity of money drops. Fiscal can) Also the overall consumption basket suddenly flipping from 60% services to 60% goods on a dime in April 2020)
- deleted 5y ago[deleted]
- neilwilson 5y agoNothing. All government spending is done by printing out of thin air. That's how monetary system clearing works. It's offset by taxes collected and people saving in excess of borrowing (net financial savings). If you want trillions in savings you have to have trillions in debt because the accounting needs to sum up to zero