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It really does look like Australia tried to print its way out of the pandemic last year, and now its purchasing power hasn't kept up with other food, energy, an
by motohagiography 4y ago
It really does look like Australia tried to print its way out of the pandemic last year, and now its purchasing power hasn't kept up with other food, energy, and other inputs prices: https://tradingeconomics.com/australia/money-supply-m1 https://tradingeconomics.com/australia/money-supply-m1
What should happen is a return of Bond Vigilantes: https://www.investopedia.com/bond-vigilante-6386194 https://www.investopedia.com/bond-vigilante-6386194 , but if it doesn't, I'd wonder who is holding most of Australia's debt.
- jeeeb 4y agoWhat are we meant to summarise from the first link? I see a chart of total money supply with the y axis starting at 1640B and going to 1700B. I.e basically no difference
- motohagiography 4y agoThey accelerated the rate at which they issued debt / created money significantly, with the effect of it affecting purchasing power. The "they're just printing money" is probably too simple an explanation for CPI inflation, but stimulus payments the printing paid for may have eroded purchasing power.