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Here are the numbers to prove it true https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS

• drexlspivey 4y ago
  What does this graph prove exactly? It goes up steadily for decades where there weren't any inflation, and then had a sudden bump 2 years before the inflation started. Inflation was caused by the massive fiscal spending (stimmies) not the FED
  • fallingknife 4y ago
    The fed printing was done to pay for the stimmies. Government spends more than it takes in in taxes so it borrows. But it borrows so much that the market won't lend it the amount it needs to borrow at the rates it wants to borrow at. So the fed prints money and lends it to the government. They call this "quantitative easing" so they don't have to say money printing. Look at this chart of treasuries held by the fed. Notice how it mirrors the money supply. https://fred.stlouisfed.org/series/TREAST https://fred.stlouisfed.org/series/TREAST
• dools 4y ago
  That's a graph that shows M2, not inflation. QE does have an impact on M2, but bank lending behaviour is not directly reserve constrained, so it has little impact on inflation.