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There is monetary supply inflation (increase in quantity of money), which WOULD be neutral if you would do an airdrop to everyone in economy in the same proport
by nathias 4y ago
There is monetary supply inflation (increase in quantity of money), which WOULD be neutral if you would do an airdrop to everyone in economy in the same proportions and this would then be the same as price inflation, but that kind of inflation would be useless. What is going on is the goverment prints money, gives it to the largest economic actors, to 'stimulate the economy' and then it 'trickles down' and we get increased volatility of prices which usually means a bigger increase in more necessary consumer goods (food, housing).
- lupire 4y agoPPP and Covid unemployment checks aren't pure trickle-down. Obviously giving money directly consumers is going to cause more consumer price increases than people who don't buy consumer goods.