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>>The idea that printing money is a primary driver of inflation may be outdated.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 suppl
by 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The idea that printing money is a primary driver of inflation may be outdated.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 agoIf printing money makes stocks go up that sounds like a positive.
- syshum 5y agoWhy? 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