4 ms·
What is consistently lost in the M2 supply talking point is the demand aspect of currency. One of the reasons why the M2 supply increasing wouldn't directly co
by gunshai 4y ago
What is consistently lost in the M2 supply talking point is the demand aspect of currency.
One of the reasons why the M2 supply increasing wouldn't directly correlate to inflation has to do with global demand to hold the asset in reserve.
So the argument I don't think is bad, just misguided in the sense that once the global demand for currency reserve is saturated the party is over for increase in supply with out a very direct affect on inflation.
- comte7092 4y agoIt is absolutely relevant, and I’d be fine with the discussion of if included your level of nuance. However it usually is a more simplistic conversation that glosses over the challenges of actually making policy at the fed.