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Throughout these time periods there was a dramatic increase in the money supply (from my view of FRED stats it doesn’t look like there’s ever been a contraction
by voisin 5y ago
Throughout these time periods there was a dramatic increase in the money supply (from my view of FRED stats it doesn’t look like there’s ever been a contraction of the monetary supply), so we’re rate increases just offset by enough monetary growth to offset?
- dragonwriter 5y ago> Throughout these time periods there was a dramatic increase in the money supply well, yeah, a hot economy means that borrowing even at high interest is attractive, which is why you are trying to constrain lending (money creation) with higher interest in the first place to prevent inflation. What would you expect to see?