It’s amazing how definitively everyone speaks about economic theory, yet intelligent people come to wildly different conclusions. That should make you wonder ho

It’s amazing how definitively everyone speaks about economic theory, yet intelligent people come to wildly different conclusions. That should make you wonder how definitive you should be. My belief is that inflation at the macro level is always caused by an increase in the money supply, but this also causes debate because the money supply can increase through multiple mechanisms. One is bank lending, another is money printing. The latest inflationary period was caused by money printing - literally dropping money from the helicopter into everyone’s bank account. This is why increasing interest rates hasn’t slowed inflation quickly, because consumers still have a lot of free money handed out to them rather than loans.