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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