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There hasn't been "furious money printing" before, at least not in comparison to post covid. Have you seen the M1 money supply? [1] [1] https://tradingeconomic

There hasn't been "furious money printing" before, at least not in comparison to post covid. Have you seen the M1 money supply? [1] [1] https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 The other misconception I often see is that if prices aren't increasing, then that means inflation is not occurring. Inflation in the sense that money is losing purchasing power, is always happening. It often doesn't perfectly reflect in consumer prices because business are hopefully becoming more efficient at some rate.

derac 5y ago
https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL Before May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, and automatic transfer service, or ATS, accounts at depository institutions, share draft accounts at credit unions, and demand deposits at thrift institutions. Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.
- zionic 5y ago
  https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL Now look at the M2, which didn’t change.
oldandboring 5y ago
Inflation in the sense that money is losing purchasing power, is always happening. It often doesn't perfectly reflect in consumer prices because business are hopefully becoming more efficient at some rate. Exactly. This article is about consumer prices, and yet this discussion became about inflation. Even I conflated the two. I should have said "perceived inflation" or just "prices". Regardless, we're saying the same thing. As I illustrated with my own example from my business, I'm raising prices right now because: 1. I need to: all my vendors are raising their prices and I need to pay my employees more. 2. I am able to do so without consequences. My clients are all raising their prices too, in order to cover rising costs from their vendors (including me) and employees. I'm perfectly willing to concede that inflation's always been happening (I'm not much of an economist) but that it took COVID to bring about a chain reaction of price increases that ordinary folks experience as "inflation".
AnimalMuppet 5y ago
> The other misconception I often see is that if prices aren't increasing, then that means inflation is not occurring. Inflation in the sense that money is losing purchasing power, is always happening. How is money losing purchasing power if prices aren't changing? If prices aren't changing, then money will buy what it bought before. Isn't that exactly "purchasing power"?
- nradov 5y ago
  If store shelves are empty then your purchasing power is zero regardless of how much money you have.

derac 5y ago

https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL Before May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, and automatic transfer service, or ATS, accounts at depository institutions, share draft accounts at credit unions, and demand deposits at thrift institutions. Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.

zionic 5y ago
https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL Now look at the M2, which didn’t change.

oldandboring 5y ago

Inflation in the sense that money is losing purchasing power, is always happening. It often doesn't perfectly reflect in consumer prices because business are hopefully becoming more efficient at some rate. Exactly. This article is about consumer prices, and yet this discussion became about inflation. Even I conflated the two. I should have said "perceived inflation" or just "prices". Regardless, we're saying the same thing. As I illustrated with my own example from my business, I'm raising prices right now because: 1. I need to: all my vendors are raising their prices and I need to pay my employees more. 2. I am able to do so without consequences. My clients are all raising their prices too, in order to cover rising costs from their vendors (including me) and employees. I'm perfectly willing to concede that inflation's always been happening (I'm not much of an economist) but that it took COVID to bring about a chain reaction of price increases that ordinary folks experience as "inflation".

AnimalMuppet 5y ago

> The other misconception I often see is that if prices aren't increasing, then that means inflation is not occurring. Inflation in the sense that money is losing purchasing power, is always happening. How is money losing purchasing power if prices aren't changing? If prices aren't changing, then money will buy what it bought before. Isn't that exactly "purchasing power"?

nradov 5y ago
If store shelves are empty then your purchasing power is zero regardless of how much money you have.