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"Inflation is always a monetary phenomenon." Your argument is supply has nothing to do with inflation? If the Russians stop supplying europe with gas the ener
by staticman2 4y ago
"Inflation is always a monetary phenomenon."
Your argument is supply has nothing to do with inflation? If the Russians stop supplying europe with gas the energy prices will stay the same?
- georgeplusplus 4y agoSupply has everything to do with inflation. Money supply. You're conflating the price of a good that is going up, becoming more valuable against the currency, known as scarcity, to inflation, or expansion of the money supply. Regardless if that scarcity is deliberately manufactured. It's comparing apples and oranges. You cannot do this because Oil and gas are not a measures of wealth. It's backwards to use them as such. We use money as a measure of wealth.
- staticman2 4y agoInflation is not defined as the expansion or contraction of the money supply. I'm sorry but what you wrote makes no sense.
- georgeplusplus 4y agoSorry I can't explain it any better. Try reading Milton Freedmans work. Inflation was going up well before the Russian invasion and sanctions. So I believe the covid stimulus, i.e literally money printing to be the main driver of it, and exacerbated further by supply shocks. Otherwise I would expect to see Core CPI come down.