3 ms·

> M2 increased 65% YoY, maybe the should cut public spending to reduce their deficit and stop the money printer instead... It's always interesting that people

> M2 increased 65% YoY, maybe the should cut public spending to reduce their deficit and stop the money printer instead... It's always interesting that people talk about money supply/printing as the cause of inflation, but don't go one step further as to the cause of the 'money printing' as well. * https://www.pragcap.com/hyperinflation-its-more-than-just-a-monetary-phenomenon/ https://www.pragcap.com/hyperinflation-its-more-than-just-a-... * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1799102 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1799102 * https://www.pragcap.com/understanding-hyperinflation/ https://www.pragcap.com/understanding-hyperinflation/ Japan has had a constantly expanding M2, and yet its inflation rate has not only been low, but negative on more than one occasion: * https://fred.stlouisfed.org/graph/?g=PA7P https://fred.stlouisfed.org/graph/?g=PA7P

aeyes 3y ago
I did. One of the primary causes of inflation is running a deficit for decades which is financed by the money printer. As a consequence, the demand for Turkish debt is decreasing because it is getting riskier and riskier. And with this the value of the lira is going down because there is lower and lower genuine demand for the currency. And when the value of the currency goes towards 0, the prices are going towards: infinity. Why do you think the government is trying to stop dollarization? Nobody wants lira. Japan is an outlier and I wouldn't cite it as a general example because it is the only example. But there are hundreds of examples of inflation caused by expanding money supply.
nvm0n2 3y ago
Inflation rates as quoted by governments aren't always informative because they tend to exclude many prices that are the most affected by money printing e.g. equities.

3 ms·

> M2 increased 65% YoY, maybe the should cut public spending to reduce their deficit and stop the money printer instead... It's always interesting that people

by throw0101d 3y ago

aeyes 3y ago
I did. One of the primary causes of inflation is running a deficit for decades which is financed by the money printer. As a consequence, the demand for Turkish debt is decreasing because it is getting riskier and riskier. And with this the value of the lira is going down because there is lower and lower genuine demand for the currency. And when the value of the currency goes towards 0, the prices are going towards: infinity. Why do you think the government is trying to stop dollarization? Nobody wants lira. Japan is an outlier and I wouldn't cite it as a general example because it is the only example. But there are hundreds of examples of inflation caused by expanding money supply.
nvm0n2 3y ago
Inflation rates as quoted by governments aren't always informative because they tend to exclude many prices that are the most affected by money printing e.g. equities.