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"government spending causes inflation is a pretty mainstream ideological precept - the opposite opinion is fringe." Hoo boy. "the current Fed chair, Jerome H.
by native_samples 4y ago
"government spending causes inflation is a pretty mainstream ideological precept - the opposite opinion is fringe."
Hoo boy.
"the current Fed chair, Jerome H. Powell, has dismissed claims that the Fed’s money-printing is fueling today’s price spiral, emphasizing instead the disruptions associated with reopening the economy. Like his most recent predecessors, dating to Alan Greenspan, Powell says that financial innovations mean there no longer is a link between the amount of money circulating in the economy and rising prices"
https://www.washingtonpost.com/business/2022/02/06/federal-reserve-inflation-money-supply/ https://www.washingtonpost.com/business/2022/02/06/federal-r...
You're right that the idea government money printing doesn't cause inflation is fringe absurdity. Unfortunately the fringe that believes in it are central bankers.
- gilmore606 4y ago> Unfortunately the fringe that believes in it are central bankers. What seems more likely? - Central bankers who control the economy do not understand the basic principles of the system they manage. - They lie about their motivations for political reasons.
- native_samples 4y agoSure. We're well into "Hard to make a man understand something if his salary depends on him not understanding it" territory here. The more interesting question is, if you incentives are strong enough to want to deny the nature of a system, do you become a liar or do you genuinely stop understanding it? Was Yellen's bafflement at the non-transitory inflation a mere act, or was it genuine confusion caused by a core corruption of her own understanding of basic economics?