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During the Great Recession, a vast increase in the money supply had no apparent impact in inflation. The idea that printing money is a primary driver of inflati

During the Great Recession, a vast increase in the money supply had no apparent impact in inflation. The idea that printing money is a primary driver of inflation may be outdated. I also think you're ignoring the dramatic and unexpected changes in demand (and some constraint in supply) caused by the pandemic.

PhileinSophia 5y ago
titzer 5y ago
> had no apparent impact in inflation. It sure inflated the stock market and (re-)inflated the housing market.
- thephyber 5y ago
  Neither of which is captured in the CPI, which is what most people say when they talk about “inflation”.
xunn0026 5y ago
Please do provide some explanation if you have any. I find it amazing that people have said from the beginning the money printer will cause inflation. When it finally arrives it was "transitory" and now, lo and behold, it's a great concern of the Fed. I still think it was the money printing. People are not scrambling to buy iPhones and factories can't keep up. Everything is more expensive!
- pessimizer 5y ago
  As mentioned in the comment you're replying to, check the expansion of the money supply after 2008, and check the inflation since; check how long it took to get anywhere near 2%. For shits and giggles, check out the predictions of the same people you're listening to now, then.
  - xunn0026 5y ago
    I'm not listening to anybody. I've been talking about the pending inflation every since the US went overdrive with money printing and started handing you money to the entire working population. Maybe I guessed it by mistake but I don't buy that the two (money printing and inflation) somehow overlapped. Again, if it were a supply issue you would see it in niches. We have inflation on energy, food, everything. The supply and demand for energy and food is about the same. There was no shock there.
nine_k 5y ago
I'd say that the inflation mostly went not into the price of groceries, but into the price of realty, the stock market, the cost of education.
- xiphias2 5y ago
  Most of the inflation is created by expanding credit, and the interest rate of credit controls where it happens. The assets you write are the easiest to get loan for, so it makes sense that price inflation happens in those assets / services.
syshum 5y ago
>>The idea that printing money is a primary driver of inflation may be outdated. No it is not >>During the Great Recession, a vast increase in the money supply had no apparent impact in inflation Ohh but it did, you just are not looking in the correct market, the money printed in that time was going into institutions, not individuals so the inflation was not in consumer goods but in stocks, real estate and other hard investments If you look at a chart of stimulus pending over time, and the stock market you see and almost exact parallel., COVID spending on the other hand was more direct, with increase unemployment payments, check sent to everyone, child tax credits etc etc etc This round this more directly impacted the consumer market
- Dylan16807 5y ago
  If printing money makes stocks go up that sounds like a positive.
  - syshum 5y ago
    Why? It removes the the stocks from business and finance fundamentals, into more speculative (aka gambling) transactions that create huge BOOMS, and even largest BUSTS in the market, taking out peoples retirements, and financial security One truism that I have always believed in, it is better overall for an investment to increase predictably @ 5%, then for it to Spike 20% then retract by 10%. Overall for the economy the person may end up with a higher gain with more volatility, but perception and human emotions would focus on the 10% loss, shaking confidence and causing other problems. I am a "steady as she goes" person, I like clam waters... I do not like chaos which is what money printing causes

PhileinSophia 5y ago

titzer 5y ago

> had no apparent impact in inflation. It sure inflated the stock market and (re-)inflated the housing market.

thephyber 5y ago
Neither of which is captured in the CPI, which is what most people say when they talk about “inflation”.

xunn0026 5y ago

Please do provide some explanation if you have any. I find it amazing that people have said from the beginning the money printer will cause inflation. When it finally arrives it was "transitory" and now, lo and behold, it's a great concern of the Fed. I still think it was the money printing. People are not scrambling to buy iPhones and factories can't keep up. Everything is more expensive!

pessimizer 5y ago
As mentioned in the comment you're replying to, check the expansion of the money supply after 2008, and check the inflation since; check how long it took to get anywhere near 2%. For shits and giggles, check out the predictions of the same people you're listening to now, then.
- xunn0026 5y ago
  I'm not listening to anybody. I've been talking about the pending inflation every since the US went overdrive with money printing and started handing you money to the entire working population. Maybe I guessed it by mistake but I don't buy that the two (money printing and inflation) somehow overlapped. Again, if it were a supply issue you would see it in niches. We have inflation on energy, food, everything. The supply and demand for energy and food is about the same. There was no shock there.

nine_k 5y ago

I'd say that the inflation mostly went not into the price of groceries, but into the price of realty, the stock market, the cost of education.

xiphias2 5y ago
Most of the inflation is created by expanding credit, and the interest rate of credit controls where it happens. The assets you write are the easiest to get loan for, so it makes sense that price inflation happens in those assets / services.

syshum 5y ago

>>The idea that printing money is a primary driver of inflation may be outdated. No it is not >>During the Great Recession, a vast increase in the money supply had no apparent impact in inflation Ohh but it did, you just are not looking in the correct market, the money printed in that time was going into institutions, not individuals so the inflation was not in consumer goods but in stocks, real estate and other hard investments If you look at a chart of stimulus pending over time, and the stock market you see and almost exact parallel., COVID spending on the other hand was more direct, with increase unemployment payments, check sent to everyone, child tax credits etc etc etc This round this more directly impacted the consumer market

Dylan16807 5y ago
If printing money makes stocks go up that sounds like a positive.
- syshum 5y ago
  Why? It removes the the stocks from business and finance fundamentals, into more speculative (aka gambling) transactions that create huge BOOMS, and even largest BUSTS in the market, taking out peoples retirements, and financial security One truism that I have always believed in, it is better overall for an investment to increase predictably @ 5%, then for it to Spike 20% then retract by 10%. Overall for the economy the person may end up with a higher gain with more volatility, but perception and human emotions would focus on the 10% loss, shaking confidence and causing other problems. I am a "steady as she goes" person, I like clam waters... I do not like chaos which is what money printing causes