4 ms·

Maybe it’s not the only factor but surely it’s the major factor right now? Sure, we had a supply shock, but then we printed the most currency in history and go

• notahacker 4y ago
  We also "printed the most currency in history" in years we didn't get soaring inflation...
  • brutusborn 4y ago
    Which years were those? I couldn’t find an equivalent graph for Aus, but this graph suggests there is some fairly strong correlation. https://www.longtermtrends.net/m2-money-supply-vs-inflation/ https://www.longtermtrends.net/m2-money-supply-vs-inflation/
    • notahacker 4y ago
      That's a graph of growth, so every year it's above zero there's "the most money in history"! That graph is actually a neat indication that the correlation isn't particularly strong for two variables with an established causal relationship, and that inflation (high by recent standards; normal for most of the 20th century) actually kicked in properly as the money supply started to fall, at the time we were subjected to a supply shock. Australia's money supply curve represents a much smoother upward trend compared with the US, but their recent inflation spike mirrors that of the US
• Nursie 4y ago
  Nope, doesn’t seem that way, the world is reeling from a variety of economic shocks right now, from covid to the Ukraine war and resource-prices fallout. “Printed the most money in history” is also one of those talking points that hides a massively complicated truth and doesn’t mean what people think it means. Soundbite economics (really soundbite anything) should be considered harmful.
  • brutusborn 4y ago
    What does it actually mean?