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We have very educated guesses. The primary difference between 2008 and now with respect to monetary policy is money velocity. Increasing money supply is a nec
by jnwatson 4y ago
We have very educated guesses.
The primary difference between 2008 and now with respect to monetary policy is money velocity. Increasing money supply is a necessary but insufficient condition for inflation.
In 2008, much of that money sat uninvested, so it didn’t impact the price of goods. In 2020, most of it got used to buy and invest.
- zie 4y agoWe do have educated guesses, The OP and my comment are 2 of them. There are more of them for sure. It wasn't un-invested, it just didn't much make it out to buy consumer goods(at least not as directly as in 2020). Like all things the devil is in the details, which get stupidly complicated.