3 ms·

Alot of people have been predicting that this inflation was driven by supply chain problems and not by printing money. I don't have enough information to give

Alot of people have been predicting that this inflation was driven by supply chain problems and not by printing money. I don't have enough information to give my opinion either way, but if indeed inflation is going back down, this wasn't luck, this was what they many were banking on.

throw0101a 4y ago
> Alot of people have been predicting that this inflation was driven by supply chain problems and not by printing money. The SF Fed looked at this: * https://www.frbsf.org/economic-research/publications/economic-letter/2022/june/how-much-do-supply-and-demand-drive-inflation/ https://www.frbsf.org/economic-research/publications/economi... About one-third seems to be demand-driven: * https://www.reuters.com/markets/us/demand-issues-account-one-third-us-inflation-spike-sf-fed-2022-06-21/ https://www.reuters.com/markets/us/demand-issues-account-one...
- paulmd 4y ago
  > About one-third seems to be demand-driven: if inflation were 1/3 of its current level, would that be considered an unusual or concerning level? It doesn't seem like it, I think that would be an acceptable level, but hey, not an economist (not that it's a hard science field or anything).
deleted 4y ago
[deleted]
mgfist 4y ago
When people said inflation was transitory, they didn't realize that the transitory period could mean a few years. For "money printing" to have an effect on inflation, the money has to actually be circulating in the system. Most of the money printing people talk about, with the exception of the big fiscal policy responses(stimulus, ppp) is just number shuffling between balance sheets. It doesn't really mean much to the real world.
pydry 4y ago
It's clearly a combination of factors. War, post covid supply chain fractures and money printing all played a significant part it's just a question of how much.

3 ms·

Alot of people have been predicting that this inflation was driven by supply chain problems and not by printing money. I don't have enough information to give

by jeromegv 4y ago

throw0101a 4y ago
> Alot of people have been predicting that this inflation was driven by supply chain problems and not by printing money. The SF Fed looked at this: * https://www.frbsf.org/economic-research/publications/economic-letter/2022/june/how-much-do-supply-and-demand-drive-inflation/ https://www.frbsf.org/economic-research/publications/economi... About one-third seems to be demand-driven: * https://www.reuters.com/markets/us/demand-issues-account-one-third-us-inflation-spike-sf-fed-2022-06-21/ https://www.reuters.com/markets/us/demand-issues-account-one...
- paulmd 4y ago
  > About one-third seems to be demand-driven: if inflation were 1/3 of its current level, would that be considered an unusual or concerning level? It doesn't seem like it, I think that would be an acceptable level, but hey, not an economist (not that it's a hard science field or anything).
deleted 4y ago
[deleted]
mgfist 4y ago
When people said inflation was transitory, they didn't realize that the transitory period could mean a few years. For "money printing" to have an effect on inflation, the money has to actually be circulating in the system. Most of the money printing people talk about, with the exception of the big fiscal policy responses(stimulus, ppp) is just number shuffling between balance sheets. It doesn't really mean much to the real world.
pydry 4y ago
It's clearly a combination of factors. War, post covid supply chain fractures and money printing all played a significant part it's just a question of how much.