> Money supply increases don’t necessarily lead to inflation[...] Money instead went into an asset price bubble. In the short term, yes, but this is a precurs

> Money supply increases don’t necessarily lead to inflation[...] Money instead went into an asset price bubble. In the short term, yes, but this is a precursor to inflation; eventually the inflated asset prices propagate to consumer prices. Some paths are: increased demand (the "wealth effect"), reduced productivity (eg. people retiring with their stock portfolios or quitting jobs to speculate on crypto/real estate), as well as rising rents. Engineering trains us to analyze full cycles. There are a lot of perpetual motion machines that look promising on the expansion stroke. Reduced borrowing costs can mask this pressure, as eg. rents remain low when mortgages are cheap, despite high housing prices. But when borrowing costs rise the floodgates are opened. Either the bubble pops and the paper asset "wealth" gets vacuumed away, or else it dumps that growth into consumer prices.