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Wouldn't the evidence of inflation occurring in other countries suggest that COVID is its primary driver, rather than a specific monetary policy? (though it doe

Wouldn't the evidence of inflation occurring in other countries suggest that COVID is its primary driver, rather than a specific monetary policy? (though it does seem that the scale of inflation in the U.S. is a little higher than elsewhere) See for example: UK: https://www.reuters.com/world/uk/boe-chief-economist-says-uk-inflation-could-top-5-ft-2021-10-21/ https://www.reuters.com/world/uk/boe-chief-economist-says-uk... Australia: https://www.reuters.com/business/australia-core-inflation-speeds-6-yr-high-q3-feeds-rate-fever-2021-10-27/ https://www.reuters.com/business/australia-core-inflation-sp... China: https://www.reuters.com/world/china/chinas-factory-gate-inflation-hits-26-year-high-2021-11-10/ https://www.reuters.com/world/china/chinas-factory-gate-infl... Germany: https://www.reuters.com/world/europe/german-inflation-could-stay-above-2-through-mid-2022-bundesbank-2021-09-27/ https://www.reuters.com/world/europe/german-inflation-could-... Brazil: https://www.reuters.com/article/brazil-economy-inflation/update-1-brazils-inflation-surges-in-august-on-back-of-higher-food-fuel-prices-idUSL1N2QB162 https://www.reuters.com/article/brazil-economy-inflation/upd...

seibelj 5y ago
US is world reserve currency. We have the ability to print unlimited dollars. All other currencies are primarily backed by US dollars. Most important commodities like oil are priced in USD. Therefore, US drives inflation globally.
- mywittyname 5y ago
  No. If the GBP goes up 10% relative to USD, and oil prices go up by 10% in USD, then oil prices remained flat in countries using the GBP, but increase for those using USD. There's no magic here.
makomk 5y ago
Other countries seem to have been pursuing broadly similar monetary policy to the US, at least in the Western world - even the EU and its member states have got in on it this time around.

seibelj 5y ago

US is world reserve currency. We have the ability to print unlimited dollars. All other currencies are primarily backed by US dollars. Most important commodities like oil are priced in USD. Therefore, US drives inflation globally.

mywittyname 5y ago
No. If the GBP goes up 10% relative to USD, and oil prices go up by 10% in USD, then oil prices remained flat in countries using the GBP, but increase for those using USD. There's no magic here.

makomk 5y ago

Other countries seem to have been pursuing broadly similar monetary policy to the US, at least in the Western world - even the EU and its member states have got in on it this time around.