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> In fact, new money supply is a minority influence on inflation This obviously depends on how the money supply is created and deployed. If you take out loans
by ch4s3 4y ago
> In fact, new money supply is a minority influence on inflation
This obviously depends on how the money supply is created and deployed. If you take out loans to hand out stimulus check you get more inflation than you would from a similar dollar value of QE.
- koheripbal 4y agoNot if only one US state is doing this. USD is a MASSIVE global currency.
- ch4s3 4y agoYeah, sure but CA is an economy the size of France and represents a LOT of consumer purchasing power. Some cost like rent are also pretty local and represent a relatively fixed supply of goods. I wouldn't personally bank on global demand for dollars absorbing a bunch of new money supply sloshing around in markets local to CA.