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> They failed to recognize earlier that printing so much would drastically increase inflation There isn't yet a complete consensus on what exactly contributed
by sz4kerto 4y ago
> They failed to recognize earlier that printing so much would drastically increase inflation
There isn't yet a complete consensus on what exactly contributed to the inflation and to what extent. Many argue that supply-side shocks contributed more than demand-side.
- spaceman_2020 4y agoYou seriously can't look at the massive asset bubble all that increased money supply created and blame it all on supply-side. Housing went up 50-100% within a year. Crypto popped to $3T+. S&P popped 100%. All of this was led by demand side. There was no supply-side problem of Dogecoin or equities. It's not unreasonable to expect that some of this also bled out to commodities and consumer goods.
- mjevans 4y agoWhat can the 'Fed' (reserve) do to fix the supply side? That requires good legislation and follow through on civic planning. We can't even get DST or NO-DST to pass even though stopping the time shift ride somewhere, for some even anywhere, seems like a no-brainer piece of legislation.
- lesuorac 4y agoThere's long been a supply side issue with housing. It's also sold at the margin so if demand keeps increasing by say 5k people/yr and supply increases at 3k people/yr then prices go up way beyond 5/3. Awfully weird for this inflation to be demand side when people got a ton of money (and spent it) and things didn't cost more and then _years_ later it did ... Like I could say inflation is going to occur people Biden ate a sandwich today and as long as it happens within the next 3 years I can just claim success?