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I'm not denying this, I think supply side shortages tend to produce inflation. Please see my response again. But to clarify, you said: > The money supply-drive

I'm not denying this, I think supply side shortages tend to produce inflation. Please see my response again. But to clarify, you said: > The money supply-driven inflation you saw in Argentina is nothing like what developed nations are seeing now. Prices are spiking because real demand for semiconductors, slots at ports, oil, etc is outstripping supply, causing prices to go up How do you know the money pumped into the economy hasn't contributed(I'm not saying it's the sole cause) to the price spikes?

xadhominemx 5y ago
Because money supply had the big upward adjustment in 1H2020 and inflation kicked in in 2H21 (same time as the supply shortages), and wage growth is not very high. Money supply growth probably has some impact on deflation not happening two years ago.
- walkhour 5y ago
  The sum of the money supply in 2H2020 and 1H2021 is similar to the money supply in 1H2020, so I don't think the fact that inflation kicked in 2H2021 makes your case. Also note the money supply was higher in 2H2020 and 1H2021 than in the semesters previous to 1H2020. Besides there's no contradiction in inflation lagging an increase in money supply. In addition, wage growth not being high doesn't prove money supply didn't contribute to inflation. Inflation and wage stagnation can happen. > Money supply growth probably has some impact on deflation not happening two years ago Similarly to my first comment, this needs to be backed, you're simply stating it.
- aortega 5y ago
  >money supply had the big upward adjustment in 1H2020 and inflation kicked in in 2H21 Inflation is not an instant phenomenon, it takes time from the point of money generation, to money distribution, to inflation. Money don't travel at the speed of light, and that delay you see is exactly what you would expect.
- cm2187 5y ago
  …pretty much the lag Friedman mentions in the video. And no, the money printing didn’t happen just in H1 2020, it has happened continuously since the start of the pandemic and the fed is still printing a ton more money right now despite being alarmed about inflation. https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...

xadhominemx 5y ago

Because money supply had the big upward adjustment in 1H2020 and inflation kicked in in 2H21 (same time as the supply shortages), and wage growth is not very high. Money supply growth probably has some impact on deflation not happening two years ago.

walkhour 5y ago
The sum of the money supply in 2H2020 and 1H2021 is similar to the money supply in 1H2020, so I don't think the fact that inflation kicked in 2H2021 makes your case. Also note the money supply was higher in 2H2020 and 1H2021 than in the semesters previous to 1H2020. Besides there's no contradiction in inflation lagging an increase in money supply. In addition, wage growth not being high doesn't prove money supply didn't contribute to inflation. Inflation and wage stagnation can happen. > Money supply growth probably has some impact on deflation not happening two years ago Similarly to my first comment, this needs to be backed, you're simply stating it.
aortega 5y ago
>money supply had the big upward adjustment in 1H2020 and inflation kicked in in 2H21 Inflation is not an instant phenomenon, it takes time from the point of money generation, to money distribution, to inflation. Money don't travel at the speed of light, and that delay you see is exactly what you would expect.
cm2187 5y ago
…pretty much the lag Friedman mentions in the video. And no, the money printing didn’t happen just in H1 2020, it has happened continuously since the start of the pandemic and the fed is still printing a ton more money right now despite being alarmed about inflation. https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...