> And how many economists pretend that expanding the money supply doesn’t increase inflation? A live demonstration of the Dunning-Kruger effect in action. The

> And how many economists pretend that expanding the money supply doesn’t increase inflation? A live demonstration of the Dunning-Kruger effect in action. The effect of change in money supply on overall inflation is mediated by the velocity of that money. If the money supply were doubled but banks & consumers sat on the cash, stowing it under their mattresses, then there's no inflationary pressure on products to be had. Conversely, if an asteroid were to strike us in a year, then regardless of if the money supply was shrinking, if people were spending their life savings in days then inflationary pressure would skyrocket.