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The current spike in inflation is a world-wide phenomena, effecting every country on Earth, and therefore it seems unlikely to have much to do with the USA's cr

The current spike in inflation is a world-wide phenomena, effecting every country on Earth, and therefore it seems unlikely to have much to do with the USA's creation of new money. The USA printed trillions of dollars of new money after 2008 and yet inflation remained very low for the next decade. If, now, the USA's printing of money is having some new effect, you have to explain why Argentina, South Africa, India, Vietnam and China are suddenly vulnerable to USA monetary policy to a degree that they've never been vulnerable before.

anu7df 4y ago
The current spike did not happen by chance or out of the blue. This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. To the extent that it was possible a lot of the countries followed the US in enacting liberal low cost lending. US of course with the mighty dollar was able to print a far more and pump far more into their economy than other countries. But many other countries followed with similar efforts. Also the newly minted dollars don't just sit in the US. I would say a lot of inflation in India is driven also by cheap VC money that flooded the Indian market in the last decade. Turns out if you dump a super duper amount of money into the economy inflation goes up. Who knew!!? As for the delay of a decade for this to kick in, my theory is that the supply took that time to really hot the market because only a few uber rich made the most of this liberal printing frenzy and the bottleneck delayed the eventual overheating of the market.
- freemint 4y ago
  > This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. > overheating of the market. Citations needed.
  - anu7df 4y ago
    > This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. This needs citation? > overheating of the market. I did say "My theory"
    - Armisael16 4y ago
      You gave a theory for why it took a decade. You stated the cause as fact.
dmix 4y ago
Is there a single western country which didn’t print massive amounts of money following COVID and prior to that with 2008? I remember seeing tons of economics articles talking about how the consequences of monetary expansion were historically being overrated by economists in the past and that countries have far more capacity than previously thought. But that was easily said during the good times when spending is high. Blaming it all on a war in Eastern Europe seems to be convenient excuse but there’s a reason you don’t spend wildly during good times, so you have the capacity to spend during the bad times. This has consistent been a critique of modern monetarist and Keynes policy (although you could argue it’s far more monetarist since a Keynesian approach would be via things like infrastructure investments for working class jobs, instead of just endless spending on backchannel megacorporate dealing in thousand page bills).
- midasuni 4y ago
  We’ve seen inflation in different areas for two lears - lumber (both supply side by mills shutting down from covid , and demand side from people doing construction projects due to covid), imports (shipping chaos from covid and the evergiven didn’t help), silicon chips and their knockons into things from cars to network switches due to china’s covid policies, to oil (demand evaporated due to covid, then when demand came back supply didn’t follow), then Russia caused more supply constriction in both oil and grain supplies.
spaceman_2020 4y ago
Not true about India. We had a spike in inflation but its now going down. Our latest print was 7.1%. India also didn’t print much money in the pandemic. The effect is clear now. We only had a short lived inflation spike after the economy reopened and its now getting back to normal.
puzzlingcaptcha 4y ago
Except Japan, Switzerland or Norway just to name the few. Meanwhile, it's rising in countries that followed Fed's playbook (notably the EU block and specifically Eurozone countries which fall under ECB's policy).
FredPret 4y ago
The US economy sets the tone for the rest of the world. It’s absolutely huge and a lot of the evonomic systems evolved around serving it.
JJMcJ 4y ago
Resources are more expensive because of interruptions due to war and disease. Like in the 1970s. Crude oil prices went up 10X between 1972 and 1982. Is it surprising that the price of everything went up during that time, or economies everywhere experienced stress? Fiscal and monetary policy isn't the whole explanation, no matter what certain recipients of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel would have you believe.

anu7df 4y ago

The current spike did not happen by chance or out of the blue. This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. To the extent that it was possible a lot of the countries followed the US in enacting liberal low cost lending. US of course with the mighty dollar was able to print a far more and pump far more into their economy than other countries. But many other countries followed with similar efforts. Also the newly minted dollars don't just sit in the US. I would say a lot of inflation in India is driven also by cheap VC money that flooded the Indian market in the last decade. Turns out if you dump a super duper amount of money into the economy inflation goes up. Who knew!!? As for the delay of a decade for this to kick in, my theory is that the supply took that time to really hot the market because only a few uber rich made the most of this liberal printing frenzy and the bottleneck delayed the eventual overheating of the market.

freemint 4y ago
> This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. > overheating of the market. Citations needed.
- anu7df 4y ago
  > This is the result of worldwide efforts to limit the fallout of the 2008 financial crisis. This needs citation? > overheating of the market. I did say "My theory"
  - Armisael16 4y ago
    You gave a theory for why it took a decade. You stated the cause as fact.

dmix 4y ago

Is there a single western country which didn’t print massive amounts of money following COVID and prior to that with 2008? I remember seeing tons of economics articles talking about how the consequences of monetary expansion were historically being overrated by economists in the past and that countries have far more capacity than previously thought. But that was easily said during the good times when spending is high. Blaming it all on a war in Eastern Europe seems to be convenient excuse but there’s a reason you don’t spend wildly during good times, so you have the capacity to spend during the bad times. This has consistent been a critique of modern monetarist and Keynes policy (although you could argue it’s far more monetarist since a Keynesian approach would be via things like infrastructure investments for working class jobs, instead of just endless spending on backchannel megacorporate dealing in thousand page bills).

midasuni 4y ago
We’ve seen inflation in different areas for two lears - lumber (both supply side by mills shutting down from covid , and demand side from people doing construction projects due to covid), imports (shipping chaos from covid and the evergiven didn’t help), silicon chips and their knockons into things from cars to network switches due to china’s covid policies, to oil (demand evaporated due to covid, then when demand came back supply didn’t follow), then Russia caused more supply constriction in both oil and grain supplies.

spaceman_2020 4y ago

Not true about India. We had a spike in inflation but its now going down. Our latest print was 7.1%. India also didn’t print much money in the pandemic. The effect is clear now. We only had a short lived inflation spike after the economy reopened and its now getting back to normal.

puzzlingcaptcha 4y ago

Except Japan, Switzerland or Norway just to name the few. Meanwhile, it's rising in countries that followed Fed's playbook (notably the EU block and specifically Eurozone countries which fall under ECB's policy).

FredPret 4y ago

The US economy sets the tone for the rest of the world. It’s absolutely huge and a lot of the evonomic systems evolved around serving it.

JJMcJ 4y ago

Resources are more expensive because of interruptions due to war and disease. Like in the 1970s. Crude oil prices went up 10X between 1972 and 1982. Is it surprising that the price of everything went up during that time, or economies everywhere experienced stress? Fiscal and monetary policy isn't the whole explanation, no matter what certain recipients of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel would have you believe.