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Agreed. It's pretty wild to see the Fed start pointing fingers at businesses when they've been expanding the money supply for over a decade. That said, inflat
by refurb 3y ago
Agreed. It's pretty wild to see the Fed start pointing fingers at businesses when they've been expanding the money supply for over a decade.
That said, inflation does create an environment where businesses can "reset prices" for reasons other than inflation driving up costs. But that's inflation in general - it creates an environment of rising wages, rising costs and a vicious circle where price increases in one place, drive price in other places. It's one reason why inflation is so hard to break. When expectations are that "prices are going up faster" then people's behavior changes.
- RhodesianHunter 3y agoYour first paragraph argues against itself. If the Fed expanded the money supply for over a decade with little to no inflation as a result until the world saw an unprecedented global pandemic that implies maybe what the fed was doing wasn't the root cause.