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> The USA is at 7% inflation. This means the central bank is not doing their job. Is it absolutely clear at this point that monetary policy is to blame? It see
by AlexCoventry 5y ago
> The USA is at 7% inflation. This means the central bank is not doing their job.
Is it absolutely clear at this point that monetary policy is to blame? It seems to me that supply-chain issues could still be a major factor.
- mywittyname 5y agoThe country did spend trillions on COVID relief. I don't think that that qualifies as "monetary policy", but it is something Congress did to keep the economy going. I think it's hard to say this didn't contribute to the demand side of the equation, since a lot of that COVID relief was put into the pockets of upper middle class small business owners. I personally know of several that are spending their six-figure paycheck protection "bonus" on some of the things that are in short supply right now (i.e., houses, cars, remodeling). In hindsight, these loans should have never been forgiven.
- chillacy 5y agoAfaik spending is referred to as “fiscal policy”. It’s hard to saw what “should” or “shouldn’t be” without being aligned on some objective measurement of outcome. After all, for a given policy change there will typically be winners and losers.
- LdSGSgvupDV 5y agoIf I remember correctly, QE was doubled between end of 2020 and 2021. How many proportion of inflation is contributed by QE?