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They have been printing money at a significantly elevated (yet far from being as high as in 2020-21) rates for years yet CPI growth remained very low both in US
by ffgjgf1 3y ago
They have been printing money at a significantly elevated (yet far from being as high as in 2020-21) rates for years yet CPI growth remained very low both in US and the EU besides fluctuations in energy prices and housing.
- chiefalchemist 3y agoThat might be true on the surface. But there needs to be an explanation why all that printing had no side effects. It doesn't make sense. Something else must be going on.
- ffgjgf1 3y agoThere was inflation in asset and some other prices but those are simply not included or have a low weight. Also increasing productivity and technological progress should (and usually does)result in lower prices of goods. Of course for things like cars or phones you end up paying the same or more for a superior product with more features, efficiency etc. instead.
- s1artibartfast 3y agoMoney has to go somewhere. When real economic growth is high, that money gets locked up investments or used to purchase more goods. If there are no good investments and the number of goods manufactured isn't increasing, then the price of goods themselves goes up.