3 ms·
No mention of quantitative easing. Am I missing something?
by throwaway743 4y ago
No mention of quantitative easing. Am I missing something?
- kodyo 4y agoIf the answer was simply "they printed too much money out of thin air" then we wouldn't need experts to tell us what else it could have been.
- culopatin 4y agoIt’s not simply printing money but maintaining high demand when supply wasn’t there
- kodyo 4y agoSure thing, man. Prices are going to fall right back to 2020 levels any year now.
- partiallypro 4y agoI don't think your point hits how you think, if prices -could- fall to the 2020 level then you could say it was mostly supply/demand driven and not monetarily driven. Of course, it never will, which lends to the idea that this has a major monetary cause on top of everything else.
- throwaway743 4y agoI'm a cynic and the majority of the time when I hear something like "experts to tell us" all I think of is clout chasers pontificating to anyone who'll lend them an ear.
- yxhuvud 4y agoQuantitative easing did not drive inflation in any relevant way. If it did, the society wide inflation would have showed up a lot earlier.
- partiallypro 4y agoThis is just not true, QE caused massive inflation in asset classes. People just didn't complain about that because it made them feel richer, but it widened the gap between rich and poor. People that have investments are much more worried about a Fed policy mistake by being too tight, but rarely if ever complain about it being too loose. I'm sure some MMTers wish we were still at 1.5% in complete denial that monetary policy matters a LOT to inflation, in fact usually being the main driver...which every monetary theorist basically agrees on.