What matters for inflation isn't just money, but the quantity of money and credit (thanks Ray Dalio for explaining this). The fed correctly predicted in early

What matters for inflation isn't just money, but the quantity of money and credit (thanks Ray Dalio for explaining this). The fed correctly predicted in early 2020 that there'd be a massive drop in lending (at least short-term), so eased, hard, so that money+credit would remain relatively constant (much less credit, so much more money was needed). I read last year that something like 26% of then-existing M2 (central bank + bank deposits) was created in 2020/2021. That's insane. Yet somehow, a year later, after a major pandemic, only a bit of inflation is showing up. People should give a fed more credit. They managed this thing pretty well. The whole thing feels like trying to adjust the temperature in the shower from 50 feet away with a long stick and a bit of string, and someone yelling "turn it up" or "turn it down". There is so much noise everywhere, it's very difficult.